Europe Stocks to Open Sharply Lower on Debt Fears

European stocks were expected to open sharply
lower on Monday after shares ended higher for the day and week on Friday
following a successful conclusion to the euro zone debt deal on
Thursday and better than expected earnings news.

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Financial spreadbetters expected Britain's FTSE 100 [.FTSE
5918.74
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-16.28
(-0.27%)

[You must be registered and logged in to see this image.]] to open 40 to 45 points lower, or as much as 0.8 percent, Germany's DAX [.GDAXI
7313.50
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-12.89
(-0.18%)

[You must be registered and logged in to see this image.]] to open 41 to 49 points lower, or as much as 0.7 percent, and France's CAC-40 [CAC40
3822.79
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-19.91
(-0.52%)

[You must be registered and logged in to see this image.]]to open 23 to 29 points lower, or as much as 0.8 percent.
In the US, the Republican-controlled House of Representatives and the Democratic-controlled Senate seem to remain [b]apart in their negotiations to raise the debt ceiling [/b]and avoid a default.
House
speaker John Boehner told Republicans he was mulling a balanced-budget
amendment to the Constitution as part of the debt bill.
In
Europe, Spain will be in focus this week as the Spanish government
tries to get tough on the country's powerful regions to ensure it meets
stringent budget-deficit targets.
Finance
minister Elena Salgado is due to meet with regional finance ministers
on Wednesday to agree new spending limits and she has warned there will
be penalties for the regions that fail to meet their targets.
Greek Finance Minister Evangelos Venizelos will deliver a speech in Washington on the [b]challenges and opportunities arising from the Greek debt crisis[/b]
and he is due to meet IMF and officials to discuss the situation in his
country following confirmation of a 109 billion euro ($156 billion) aid
package for Greece.
In corporate news, Deutsche Bank
will hold a supervisory board meeting on Monday ahead of second quarter
results, with news on Josef Ackermann's replacement heavily
anticipated.
In
London, the UK Office for National Statistics will publish a report on
the overall happiness of Britain after Prime Minister David Cameron
announced the plans to measure national wellbeing in November.
Gloomy
news over the pace of the UK recovery might well affect the results
which have been collected since April and cover health, education and
the local environment.
Second
quarter industrial survey results from France will be released at 7:45
London time and British Bankers' Association high street banking group
statistics for the UK will be out at 8:30.