European Stocks to Rebound From 7-Week Lows

European shares were set to rise Tuesday, bouncing back from seven-week closing lows in the previous session on worries about the euro zone debt crisis, after Wall Street cut its losses.

Sharon Lorimer

European shares hit their lowest close in seven weeksMonday, after an 85 billion euros bailout deal for Ireland failed to allay concerns that the euro zone debt crisis could spread to other countries.

Markets shifted their attention to other heavily-indebted euro zone nations on Monday after the Irish bailout feared to allay investors fears.

The premium investors demand to hold Belgian government bonds rather than benchmark German debt rose to its widest level since early 2009as the country issued 2 billion euros of 2014, 2020 and 2035-dated bonds.

Portugal and Spain were also in focus once again, with the cost of insuring Portuguese and Spanish debt against default rising to a record high after a tepid Italian auction result and on fears over the spread of the euro zone debt crisis.

The EU cut its growth forecast for Spain in 2011, saying the country had yet to embark on a robust recovery path.

Tony Hayward steps down from the BP Board of Directors, having already been succeeded as Chief Executive by Bob Dudley on Oct. 1.

Hayward was heavily criticised for his handling of the Gulf of Mexico oil spill following the sinking of the Deepwater Horizon rig in April.

Among macroeconomic data due out on Tuesday is UK consumer confidence.

Germany releases labor market statistics, including unemployment, while the European Commission published its November flash estimate for euro zone inflation and figures for euro zone October unemployment

European Central Bank President Jean-Claude Trichet is due to speak at the European Parliament in Brussels on Tuesday and could provide further clues on monetary policy.

In Britain, students will stage further nationwide protests against tuition fee rises.