Europe Economy

Europe Markets Set to Fall After Another Greek Delay


The major European markets were called lower on Thursday after yet another delay in the Greek bailout deal.

The FTSE 100 was expected to open 41 points lower, while the DAX was called 61 points down and the CAC 40down 23 points.

The Greek Finance Minister Evangelos Venizelos said Wednesday night that Greece has met the two final demands of the “troika” that’s expected to lend Greece 130 billion euros ($169 billion), and can secure a deal next week.

Venizelos also protested that some euro zone countries are trying to force Greece out of the region, heightening concerns that the country could default on its debt repayments.

Worries about the impact of the euro zone debt crisis on the world's financial system deepened after Moody's warned it may downgrade some of the world's biggest banks, including HSBC, Goldman Sachs and Bank of America. 

It emerged that foreign direct investment in China fell for the third month in a row Thursday morning, indicating that economic trouble elsewhere could hit its powerhouse economy.

European companies reporting full year results for 2011 on Thursday include Societe Generale, luxury goods giant PPR, Renault, Reed Elsevier and Zurich Financial.

In the US, Treasury Secretary Timothy Geithner will testify to the House Budget Committee on the administration's economic plans for 2013.

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