European shares were called to open higher on Wednesday tracking shares in Asia, on hopes of more quantitative easing in the U.S. after Federal Reserve chairman Ben Bernanke outlined a gloomy view of the U.S. economic recovery to Congress on Tuesday.
The FTSE was seen opening 21 points higher at 5650, the DAX was expected to open higher by 30 points at 6607 and the CAC40 was called to open up by 18 points at 3197.
While not explicitly saying the Fed would introduce a third round of bond purchasesm Bernanke said the U.S. central bank was ready to act if the economic picture worsened and forecast GDP growth would be no higher than 2 percent in the second quarter or for the remaining quarters in the year.
Elsewhere Spain's government will be liable for a bailout of up to 100 billion euros ($122 billion)to prop up the country's financial sector, German finance minister Wolfgang Schaeuble said Wednesday, a day before a Bundestag vote on the Spanish bank rescue.
"The aid goes to a state authority, the state is responsible for paying back the aid and in return the state ...
commits to a far-reaching reform of its banking sector and other adjustment measures," Schaeuble told the Rheinische Post newspaper.Page 1 of 3 | Next Page