FTSE, DAX, CAC Seen Higher on Bernanke Comments

European stocks are seen opening higher as overnight Asian shares were boosted following U.S Federal Reserve Chairman Ben Bernanke’s comments Monday that ultra loose monetary policy was still necessary for the U.S economy.


The FTSE 100 is seen opening higher by 19 points, the DAX by 65 points and the CAC up by 19 points.

Bernanke’s comments were seen by some as confirming that the door to further asset purchases by the U.S. central bank would remain open. He also warned that faster growth was needed to bring down the unemployment rate.

German Chancellor Angela Merkel told the BBC that a Greek exit from the euro zone would be “catastrophic” and an economic and political mistake for the whole euro zone.

Transocean, owner of the world’s largest offshore drilling fleet, is expected to sell some of its older rigs this year, valued at between $500 million to $ 1 billion, as it upgrades its fleet.

The OECD’s Economic Survey of the Euro Area will be released at 8:30 a.m. GMT, with Secretary-General Angel Guerria attending in Brussels.

The Arab League annual summit opens on Tuesday in Baghdad. The summit has been marred by the socio-political events across the region, which led to its postponement from last May, as well as demands from the six members of the Gulf Co-Operation Council (GCC) that they would attend only if Syrian President Bashar Al Assad was not invited.

Spanish bond auctions, of 2 to 3 billion euros ($2.67 billion to $4 billion) in 3- and 6-month T-bills at 9:30 a.m. GMT, will be watched closely as worries about that nation’s economic stability have ramped higher in recent weeks.

Italy will also tender between 2 and 2.5 billion euros ($2.67 billion and $3.4 billion) in shorter-dated bonds and up to 1 billion euros in longer-dated bonds, both at 10:00 a.m. GMT.