European shares were set to pause at the open on Tuesday after strong gains in the previous session, with the UK’s top share index set to outperform after a public holiday.
Financials were set to be in focus after UBS said it is in advanced talks with the US Department of Justice to settle the allegations of foreign exchange market rigging, as Switzerland’s biggest bank by assets posted forecast-beating first-quarter earnings.
Futures on the Euro Stoxx 50, Germany's DAX and France's CAC were all 0.1 per cent to 0.3 per cent lower by 0614 GMT.
Manufacturing data, M&As
European shares had advanced in thin trade on Monday, boosted by better-than-expected German manufacturing data and merger and acquisition speculation about chemicals companies. Germany’s DAX rose 1.4 per cent.
Trading volume was lighter than usual on most indexes because of a public holiday in Britain, Europe’s largest stock market.
Futures on the FTSE 100 were up 0.7 per cent on Tuesday, with traders saying Britain’s FTSE 100 was set to play catch up with Europe after missing out on Monday's gains. Some traders cited continued uncertainty over Greece as capping the market gains in the euro zone.
Greece debt talks
Wide differences over pension and labour reforms continued to dog intensive negotiations between Greece’s leftist government and its international creditors despite progress in other areas as the country’s cash position becomes increasingly critical.
“An agreement on Greek debt load remains elusive, so waiting on the sidelines could prove an acceptable approach,’’ Derek Baker, trader at London Capital Group, said in a note.
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