European shares were called to open higher on Friday following a report from Reuters indicating central banks across the world are ready to provide liquidity to global markets if Sunday’s Greek election result is inconclusive or sees anti-austerity parties take power.
The FTSE was called to open 21 points higher at 5488, the DAX was seen opening 29 points higher at 6168 and the CAC 40 was expected to open 22 points higher at 3054.
Central banks from the world’s major economies stand ready to stabilize financial markets by providing liquidity to prevent a credit squeeze if the outcome of Greek elections on Sunday causes volatile trading, G20 officials told Reuters.
A senior U.S. official told Reuters that the Greek election will not provide "the definitive signal on what happens next" in the euro zone debt crisis.
But if severe market strains emerge after an unusual convergence of three elections this weekend - Egypt and France go to the polls as well - central bankers are on standby to ensure enough cash is flowing through the financial system.
"The central banks are preparing for coordinated action to provide liquidity," said a senior G20 aide familiar with discussions among international financial diplomats. His statement was confirmed by several other G20 officials. It should be noted that G20 officials to not speak for the world’s leading central bankers.Page 1 of 3 | Next Page