Europe Economy

FTSE, DAX, CAC Seen Flat After Rally

European markets were called broadly flat Tuesday as investors await news from European policymakers on further details of the bailout fund to help stricken euro nations and following a rally that saw markets post the biggest one-day gain in a month on Monday.

The FTSE 100 is called lower by 11 points, the DAX lower by 19 points and the CAC 40 down by 17 points.

At the Eurogroup meeting today euro zone finance ministers are expected to agree on details to leverage the European Financial Stability Facility (EFSF) as well as approve the latest Greek bailout payment.

Reports have suggested leaders could unveil their plans for a fiscal union for the 17 member states at the meeting.

Reports in La Tribune, the French daily, cited sources as suggesting that Standard & Poor's the credit rating agency could change the outlook to France's triple-A credit rating to negative within the next ten days.

The move is seen as a precursor to a downgrade.

In an interview with CNBC, Christian Noyer, Bank of France governor and a member of the European Central Bank's governing council said he was not worried the country will lose its top rating as its fundamentals were strong.

In the UK, chancellor George Osborne will unveil his eagerly awaited Autumn statement, which is expected to outline the government's plans to boost growth and head off another recession.

The Office for Budget responsibility is expected to cut growth forecasts for the UK in 2012.