hang seng

Indices across Europe are expected to open flat ahead of the anticipated moves from the ECB to cut interest rates and a further injection of QE from the Bank of England.

Yesterday's relief rally prompted by the Greek election on Sunday failed to translate to Asian markets overnight, as concerns over Spain's economy dominated trading.

London's leading share index climbed in early trading after a strong session on Wall Street yesterday.

European equities have fallen sharply this morning as the rate of Spain's manufacturing contraction increased and soaring eurozone unemployment worried investors.

Asian markets fell more than 1% in some regions overnight, with the wider area set for its biggest monthly drop since the financial crisis of 2008.

Shares across Europe rose in morning trading as the eurozone's decision to back a second €130bn (£109bn) bailout boosted hopes for an economic recovery.

US stocks saw their worst day so far in 2012 yesterday as Greek debt swap concerns and fears over global growth put pressure on markets.

European markets edged lower this morning, echoing falls across Asia overnight, as investors showed caution over the outcome of the Greek debt swap deal.

Stocks in Asia rallied overnight as reports of slowing Chinese growth increased speculation the government would act to ease lending curbs and avoid a hard landing.

Asian markets were boosted overnight by speculation the Chinese government is poised to begin loosening its monetary policy in response to the impacts of the eurozone debt crisis.