European shares are poised to rebound from a one-week low on Monday after Greek lawmakers approved a highly unpopular package of austerity measures amid nationwide protests, paving the way for its international creditors to release EUR 130 billion in aid to the troubled euro member.
The difficult vote came amid one of Greece's worst riots with thousands gathering outside Parliament and hurling stones and firebombs at the police. They also set several building on fire in Athens.
Investor focus has now shifted to another extraordinary meeting of euro finance ministers set for Feb. 15 where EU officials are expected to approve the second aid package.
The euro is gaining ground against the dollar, recouping some of the losses made on Friday, while Asian stock markets are turning in a mixed performance. Data released today showed that Japan's economy shrank 2.3 percent in the fourth quarter, as manufacturers were battered by the strong yen, slowing global growth and severe flooding in Thailand.
In economic news, the Confederation of British Industry has lowered its growth outlook for the U.K. economy, but said that the country may avoid a technical recession after 0.2 percent contraction in GDP in the fourth quarter of 2011. The industry group cut its growth outlook for 2012 to 0.9 percent from 1.2 percent projected in November. The outlook for 2013 is trimmed to 2 percent from the previous forecast of 2.2 percent.
The German government is slated to conduct a 6-month Bubill auction later in the day, with an aim to raise EUR 4 billion.
In corporate news, UniCredit SpA and Intesa Sanpaolo SpA were among 34 Italian financial firms downgraded by Standard & Poor's after the ratings agency reduced Italy's sovereign credit rating last month.
French luxury group LVMH Moët Hennessy Louis Vuitton SA's private equity unit has acquired a 10 percent stake in Chinese casual-wear company Trendy International Group for about $200 million, media reports suggest.
Telecom S.A. is nearing a deal to buy some of Egyptian telecom mogul Naguib Sawiris' stake in Egyptian telecom company Mobinil, according to a Bloomberg report.
Nuclear engineering company Areva SA and French state-owned utility Electricite de France said that they have agreed on a long-term deal for the supply of natural uranium by Areva to EDF over the period from 2014 to 2030.
A consortium comprising Alstom SA and the Emirati-Belgian Cofely-Besix Co. has won a 13-year maintenance contract for the Al Safouh Tramway in Dubai.
British mobile phone operator Vaodfone Group Plc is considering a $1.1 billion bid for Cable & Wireless Worldwide Plc, the Sunday Times reported.
European stocks lost ground on Friday, with banks struggling as investors remained focused on the developments in Greece. The Euro Stoxx 50 index of eurozone bluechip stocks shed 1.7 percent and the Stoxx Europe 50 index, which includes some major U.K. companies, eased 0.9 percent, while around Europe, Switzerland's SMI, the U.K.'s FTSE 100, the German DAX and France's CAC 40 ended down between 0.6 percent and 1.5 percent.
U.S. stocks fell notably on Friday, with concerns about the financial situation in Greece and downbeat data on U.S. consumer confidence and trade deficit contributing to the pullback by the markets following recent gains. The Dow and the S&P 500 slid around 0.7 percent each, while the tech-heavy Nasdaq lost 0.8 percent.
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