European Markets to Fall as Debt Doubts Linger

European stocks were expected to open significantly lower on Wednesday, despite a slight bounce on Tuesday’s close with gains for miners on Glencore’s first day of regular trading on the London Stock Exchange.


The pan-European FTSEurofirst 300 index of top shares rose 0.2 percent having fallen 1.7 percent by Monday’s close, but increased concerns over euro zone debt and the impact of a volcanic ash cloud are likely to impact Wednesday’s trading.

US stocks closed lower after a choppy session, while Asian shares were trading down because of lingering worries regarding the US economy's outlook and Europe's ongoing debt crisis.In Germany, Xetra Dax-listed airlines Lufthansa and Air Berlin are likely to see their share prices move as the ash cloud hits northern Germany, leading to further flight cancellations and delays.

The euro fell on Wednesday as speculative selling of the currency intensified amid rumors that Greece could call a snap election.

The euro fell 0.3 percent against the dollar to $1.4060 as the US currency rallied further.

In politics, US President Barack Obama will address the British parliament on the last day of his official state visit before travelling to France for the G8 summit.

At 7:10 London time, Germany’s consumer climate survey for June will be released, with UK monthly service sector figures for March out at 8:30.