European Shares Poised to Bounce Back, Banks Eyed

European equities were poised to rise on Monday, bouncing back from Friday's sharp losses as a dip in crude oil prices eased recent concerns over inflation, while takeover activity boosted sentiment.

But gains could be limited as worries over the banking sector remained at the forefront of investors' minds after Swiss weekly Sonntag reported that Swiss authorities could require UBS and Credit Suisse to set aside an additional 70 billion Swiss francs($68.29 billion) in capital.

Financial bookmakers, or spread betters, in London expected Britain's FTSE 100 index to open between 12 and 27 points higher, the German DAX 26 to 37 points higher, and the French CAC 40 6 to 20 points higher.

"We're looking at a broadly positive start to the week for equities after a punishing few days, although there will still be a degree of caution amongst traders as there's still no change in the underlying fundamentals that point towards recessionary threats on both sides of the Atlantic," Paul Webb, chief dealer at CMC Markets in London, wrote in a note.