European shares are seen lower Wednesday on mounting concerns over the Greek debt restructuring plan as part of last month’s bailout.
Reports suggest that four Greek pension funds have refused to take part in Greece’s bond swap, which is aimed at reducing the country’s debt by 100 billion euros. The swap must be completed by Thursday evening. The Greek government has introduced legislation that would see Collective Action Clauses – CACs – activated, forcing bondholders to take the losses.
Volatility in the Asian markets overnight tracked big losses in the three major US equity indexes as positive sentiment from increased liquidity waned.
Super Tuesday in the US – where ten states voted for the Republican presidential nominee – saw Mitt Romney eventually taking the lead after winning the bell-weather state of Ohio and four others. Santorum lagged behind, winning three states, including Tennessee. Newt Gingrich won his home state of Georgia.
Staying with the States, Apple, the tech giant, is expected to unveil its latest iPad tablet – the iPad 3 – key for the company as it seeks to maintain its dominance over other tech companies.
Germany will tender between 4 billion euros in 5-year bonds at 10.30 am GMT.