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Europe Shares Seen Mixed as Markets Watch Greece

European shares are called to open the trading day mixed as markets survey the post-election landscape in Greece and the future of that country in the euro zone.

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

The FTSE 100 was set to open 8 points lower while Germany’s DAX was called to open higher by 17 and the CAC 40 was seen opening 5 points lower at.

The win by the socialist Francois Hollande in France over the weekend has been eclipsed by the Greek story as the driver of negative sentiment for the markets, as fears abound that time is running out for the beleaguered country.

A failure by the two leading politics parties—proponents of the country’s second bailout earlier this year—to secure a majority and form a coalition has in effect handed the baton to the Coalition Left, which opposes the bailout.

The country auctions up to 1.5 billion euros ($1.95 billion) in government bonds at 10:00 a.m. BST (5:00 a.m. New York time).

The International Monetary Fund conceded to some extent that economic growth could be hampered by too much austerity, particularly in an economically strained environment, as Managing Director Christine Lagarde said calibrating spending cuts and achieving the right pace are essential.

Meanwhile Spain, which has been caught in the euro zone debt crisis headlights of late, is reportedly seeking to bail out Bankia, its third-largest lender as Chairman Rodrigo Rato stepped down Monday.

The European Central Bank’s monetary policy is no panacea for Europe’s ills, Jens Weidmann, ECB policymaker and President of the Bundesbank wrote in the Financial Times.

He added that the ECB must resist calls to act further in order to contain the euro zone debt crisis.

Earnings to watch Tuesday include HSBC , Tui Travel, Munich Re, Deutsche Post and Norway’s Statoil.

In the U.S., Virginia and Indiana see Republicans casting their vote on who is their preferred candidate to face Barack Obama in November’s Presidential election.