Europe Economy

FTSE, DAX CAC Seen Lower as Oil Concerns Persist with Reuters

European stocks were expected to open lower on Monday, tracking overnight losses in Asia where shares fell on concerns over high oil prices which have raised concerns about global growth.

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The FTSE 100 is seen down 11 points, the DAX was expected to open 23 points lower and the CAC 40 down 13 points.

Brent crude was still trading at record highs in euro and sterling terms due to fears of supply disruption as tensions between Iran and Western powers mount.

The euro zone's problems also remained in the spotlight on Monday.

Finance ministers of the G20 countries met in Mexico on Sunday to prevent further fallout from the euro zone debt crisis. They worked on a deal to boost financing for the International Monetary Fund in April – when the G20 next meets - on condition Europe strengthened its bailout fund by then.

The European Central Bank launches a second three-year funding operation on Wednesday. It is expected to lend around 500 million euros ($673 million) to European banks in a closely-watched operation.

Many analysts argue that the first long-term refinancing operation helped to ease tightness in funding markets.

The Financial Times reported on Monday that the Royal Bank of Scotland and Lloyds will raise a combined 15 billion euros of new cash through the facility.

HSBCreports fourth-quarter and 2011 earnings on Monday morning.

Analysts polled by Thomson Reuters expect the group to report pre-tax profit of $22.2 billion for 2011, up 16 percent from 2010.

There is relief for BP as the start of a federal trial over the United States' worst offshore oil disaster in the Gulf of Mexico has been delayed to March 5.

The trial to decide who should pay for the oil spill was due to start on Monday, but BP will now try to settle with people affected by the disaster.