European Stocks to Rise as Greece Gets Aid

European stocks were expected to open higher on Monday after they hit a one-month closing high on Friday as better-than-expected manufacturing data for June raised hopes that the US recovery is still on track and euro zone finance ministers agreed to release the next tranche of aid to Greece.

Close-up of a pen on stock price chart
Close-up of a pen on stock price chart

The FTSE 100 index is seen opening up 4-9 points, or as much as 0.2 percent, according to financial bookmakers, bumping up close to the psychologically important 6,000 level. Germany’s DAX

is predicted to be up by 25 points to 7436 and the CAC 40 in France is called 15 points higher at 4016.

London’s FTSE closed the week up 292.04 points to 5989.76, while the DAX was up 298.06 points to 7419.44 and France’s CAC 40 rose 222.55 points to 4007.35.

In the US, stocks closed sharply higher on Friday to record their best week in almost two years in response to the positive manufacturing data and the optimism continued in Asia on Monday as stocks surged and momentum swung behind riskier assets.

The euro was hit on Monday by a fresh downgradeby credit rating agency Standard and Poor's which lowered the long-term rating on Greece to 'CCC' from 'B'.

After an earlier rally against the dollar, the single currency fell sharply lower to $1.4531 from a high of $1.4565.

Economic data out on Monday includes June's unemployment data from Spain, available from 8:00 London time and European Union PPI figures for May which will be released at 10:00 UK time.

In Germany, the European Insurance and Occupational Pensions Authority will hold a press conference at 11:00 London time to discuss stress tests within the insurance industry.

Fifteen novices will begin trading in London on Monday as part of an experiment to prove that anyone can become a trader.

Mike Baghdady and Training Traders will give each trainee £100,000 each to invest in a scheme similar to the US 'Turtle Trader' experiment in 1983.

Deloitte will publish its latest quarterly survey of Chief Financial Officers on Monday, surveying opinions on valuations, risks and financing and the attitudes of major corporate users of capital.

A bronze statue of former US President Ronald Reagan will be unveiled in Grosvenor Square in London on Monday, by British Foreign Secretary William Hague and former US Secretary of State Condoleezza Rice as part of a year of celebrations to mark the centenary of the former president's birth.

US markets will be closed on Monday due to Independence Day celebrations.