Major European bourses are initially seen trading moderately higher Tuesday following some heavy losses observed in the previous session. Spanish banks are likely to be subject of some pressure after Moody’s Investors Services, as expected, lowered its long-term ratings on 28 of the country’s institutions by between one and four notches. The downgrade reflects the perception that Madrid’s ability to provide support to the local banking system has declined. The expected downgrades were posted on the same day that Spain formally requested EU aid to help its troubled banking system. As of yet, the amount is still unknown, but is expected to be revealed on July 9, as are the terms and the fund that it will be coming from. Cyprus also coupled up with Spain in requesting EU support Monday just hours after Fitch Ratings Agency lowered its debt rating on the country to junk.
* FTSE-100 is currently seen opening 12 points higher, around 5459-5465
* Dax is currently seen opening 25 points higher, around 6154-6160
* CAC-40 is currently seen opening 10 points higher, around 3027-3033

StockMarketNews Research Team