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created on 04/19/2012  |  http://fubar.com/esd/b347708

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LONDON (Dow Jones)--European stock markets are set to drop at Wednesday's open after a former Greek prime minister said preparations for an exit from the euro zone are being considered, damping optimism ahead of a European Union summit. Discount Oakley Fuel Cell Sunglasses

Former Greek Prime Minister Lucas Papademos also told Dow Jones Newswires late Tuesday that there is only limited room for the country to negotiate its loan program. He later clarified his comments about preparations for Greece leaving the euro zone in an interview with CNBC.

Papademos said there are no preparations underway in Greece for a possible exit of the euro, and he is unaware of any specific preparations in European institutions or other European countries. "Irrespective of his turnaround, the damage to sentiment has been done and markets are set to open in a risk-off mood," said Jonathan Sudaria, a dealer with Capital Spreads. oakley flak jacket sunglasses reviewsC

Sudaria called the U.K.'s FTSE 100 index to open around 61 points lower at 5342, Germany's DAX index down by 92 points at 6344 and France's CAC-40 index lower by 40 points at 3047.

"The market tone remains one of selling risk on rallies. Unless there are dramatic developments at today's European Union summit, risk assets are set to continue to remain under pressure," said Credit Agricole.

Enthusiasm for the EU summit, partly responsible for some of the gains in global markets in the last two sessions, started to diminish by early Wednesday. EU leaders are set to discuss the recent developments of the euro-zone debt crisis, but EU President Herman Van Rompuy has clearly poured some cold water on expectations that the meeting could lead to final decisions on the themes that will be discussed. Discount Oakley Asian Fit sunglass

Euro-zone bonds will be one of the main topics of discussion although internal divisions between Germany and France on the subject haven't diminished. Leaders are also expected to discuss a number of measures to boost growth and productivity in the euro area, aimed at counterbalancing the effects of the

On Wall Street Tuesday, stocks finished broadly flat as investors considered comments by Papademos. After a 71-point rise, the Dow Jones Industrial Average lost nearly 2 points to close at 12,502.81, while the Standard & Poor's 500 index was up nearly 1 point at 1,316.63.

Asian markets fell Wednesday, with Japan's Nikkei 225 off 2.1%, Australia's S&P ASX 200 down 1.2%, and Korea's Kospi lower by 1.3%. Hong Kong's Hang Seng Index dropped 1.9% and China's Shanghai Composite fell 0.9%. Cheap Oakley Active Sunglasses

 

 

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