Europe Economy

Europe Markets Seen Edging Higher; Investors Watch Spain


European shares are seen opening slightly higher Tuesday as markets closely watch Spain amid soaring bond yields and concerns over the the country's banking system.

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The UK’s FTSE and the CAC were called to open 1 point higher and Germany’s DAX was expected to open up 21 points.

Spain’s 10-year bond yield has been hovering just below the 7 percent mark on mounting concerns over the cost of shoring up the country’s banking system.

Prime Minister Mariano Rajoy has declared that the banking system would not need rescuing.

At the epicenter of the euro zone crisis, Greece’s four biggest banks received 18 billion euros ($22.57 billion) of funding support as part of a long-planned recapitalization effort.

The euro zone crisis was top of the agenda at a meeting between the UK government and Bank of England Governor Mervyn King.

Top bank regulator Adair Turner also attended the meeting, where discussions were dominated by the stability of the euro zone bloc and the potential effects on the UK economy in the event of any regional breakdown.

The Financial Times is reporting that Goldman Sachs has delayed the launch of its new corporate bond trading platform after a series of “logistical failures” stalled its arrival into the electronic fixed income trading arena.

Facebook, which has had a tumultuous start to its listing on the Nasdaq, could launch its own smartphone next year as it makes its first foray into the competitive mobile phone market, according to the New York Times.

De La Rue , which prints banknotes, among other things, will be posting full-year results later Tuesday.