Europe Stocks Seen Lower on Renewed Debt Worries

European shares are seen retreating Wednesday following sharp falls in global equity markets overnight as euro zone debt fears rear their head once again despite a surprise first quarter profit from Aluminium producer Alcoa in the U.S.

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The FTSE 100 is expected to open down 23 points, the DAX is seen lower by 12 points and the CAC is seen down by 17 points.

In the first trading day following the Easter break, Tuesday saw sharp pullbacks in markets across Europe. Lingering fears that Spain has more troubles than it can cope with combined with disappointing jobs data from the U.S at the end of last week saw markets fall to a ten- week low.

The European Commission warned Spain that more details on its budget may be needed after the country submitted its budget plans.

The country has until the end of the month to submit regional budgets.

Greece will call a snap election on May 6, Reuters reported cited government officials, the first since the country’s debt crisis in 2009.

The two main parties in the elections are deeply unpopular with the electorate for supporting the austerity measures necessary to ensure a bailout from international creditors.

In the U.S Rick Santorum dropped out of the GOP race for the presidential nomination leaving the path clear for frontrunner Mitt Romney to face Barark Obama in November’s election.

In bond auction news, Italy will tender between 7 and 8 billion euros of BOTs – short term bonds with maturities of up to 365 days designed for individual investors - at 10:00am BST and Germany tenders 5 billion euros in 10-year bonds also at 10:00am BST.