Europe Markets

FTSE, DAX, CAC Seen Flat to Lower; Greece Weighs

European shares looked set to open flat to lower Monday morning as bailout talks between Greece and its international lenders continue.

The FTSE 100 was seen lower by just 1 point, the DAX 13 points lower and the CAC40down by 15 points.

Greece’s international lenders are demanding a series of reforms in exchange for a second bailout. Greece’s two major unions have planned a 24-hour strike on Tuesday against the measure and reforms that are being demanded.

In corporate news, the Financial Times reported that Glencore is expected to pay a larger premium than expected to seal its $88 billion proposed deal with Xstrata. Shareholders in global miner Xstrata are set to receive 2.8 shares in commodities trader Glencore International, for each Xstrata share.

In the US, President Barack Obama said in an interview with NBC that Israel had not decided how to respond to concerns about Iran’s nuclear program. Recent weeks have seen tensions rise in the region, with reports suggesting Israel may be planning to attack Iran in the next few months.

Two bond auctions take place on Monday, with the Netherlands expected to tender between 2 to 4 billion euros worth of 3-month and 6-month T-bills at 10 a.m. GMT, followed by France’s bond sale of between 7 billion to 8 billion euros in its weekly T-bill auction at 1:50 p.m. GMT.

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