Europe Markets Seen Rising Despite Tepid EU Summit

European shares are called to open the trading day higher despite a lackluster European Union summit that found Greece being urged to stay in the euro zone but to honor commitments to its bailout agreement.


The FTSE 100 is seen opening higher by 36 points, Germany’s DAX up by 50 points and the CAC by 23 points as they attempt to claw back some of the steep losses of recent sessions.

Overnight, Asian shares dipped lower as euro zone fears continued to affect investor sentiment and U.S shares ended their sessions mixed.

EU leadersended their summit by agreeing that Greece needed to stay in the euro zone but could not define any meaningful action that could be taken, leaving the serious discussion of Eurobonds for the next summit.

Positive rhetoric on Eurobonds by French President Francois Hollande, who is a firm supporter of pooling euro zone debt, was backed up by Italian Prime Minister Mario Monti.

A possible Greek exit from the currency bloc has turned up the heat on Spain seen as likely to be the next in the line of fire if that scenario plays out.

Spain announced a 9 billion euro ($11.3 billion) bailout for troubled lender Bankia, its fourth largest bank Wednesday as the country continues to battle against fears that it could be vulnerable as the debt crisis deepens.

At 9:00 London time Germany's well-renowned IFO institute releases its business climate index seen as a key barometer for the economic health of the economy.

Chinese factory orders experienced a slowdown in May, a private sector survey showed Thursday. The HSBC Flash Purchasing Managers Index, the earliest indicator of China's industrial activity, retreated to 48.7 in May from a final reading of 49.3 in April. Any number below 50 indicates a contraction.

Egyptians take to the polls for the second day running in order to choose a president to replace Hosni Mubarak, who was removed last year. Former Secretary General Amr Moussa looks likely to take the lead.