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FTSE, DAX, CAC Seen Lower Despite Greek Deal

European shares were called to open lower Tuesday despite Greece securing its crucial second bailout of 130 billion euros ($172 billion) helping it to avert a disorderly default.

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The FTSE 100 was called lower by 10 points the DAX seen down by 9 points and the CAC 40 down by 2.5 points.

After protracted discussions between euro zone finance ministers and the Greek government, an agreement was reached after private sector bondholders agreed to accept higher losses on their holdings of Greek government debt.

Despite the bailout agreement only hours old, reports are already beginning to surface that show cracks in the plan for the Greek economy in the long term.

The Financial Times newspaper is reporting that Greece may need a third bailout when this second bailout runs out.

The report claims to have seen a confidential report prepared by analysts of the Troika – the International Monetary Fund, the European Central Bank and the European Commission - which cites the need for “prolonged financial support” over fears that the austerity program risks a prolonged recession.

Spain will hold a bond auction tendering between 2 to 3 billion euros in 3 and 6 month t-bills at 9.30 GMT.