FTSE, DAX, CAC Seen Higher on Stress Test Boost

European shares are seen getting a lift Wednesday after the earlier-than-expected annual bank stress test results in the US saw most of the financial institutions pass, boosting Asian shares overnight.


The FTSE 100is seen higher by 29 points, Germany’s DAX by 27 points and France’s CAChigher by 10 points.

The Federal Reserve was forced to announce its results two days earlier than planned after JPMorgan Chase announced its passing of the test, although some surprise failures included Citigroup.

The results overshadowed the Federal Reserve’s meeting, which slightly raised its positive outlook on the US economy but yielded nothing more on further monetary stimulus.

Treasury officials in the UK said Finance Minister George Osborne will unveil a 100-year gilt in his budget next week. The move is intended to take advantage of the historically low interest rates in the UK – at 0.5 percent for the past three years.

In the US, President Barack Obama will host UK Prime Minister David Cameron and his wife at the White House for a second day.

The Financial Times reported that Europe’s biggest telecommunication companies face a European Commission probe after meetings between the executives from some of the companies led to suspicions of antitrust activities.

Italy is the only euro zone country tendering bonds Wednesday, with between 5 and 6.5 billion euros ($8.48 billion) in three-year bonds being auctioned at 10:00 a.m. GMT (6:00 a.m. New York time).