European shares and euro open flat

European shares and the euro were flat today, with investors nervous over reports of official preparations for a Greek exit from…

European shares and the euro were flat today, with investors nervous over reports of official preparations for a Greek exit from the euro zone and after details of the Spanish bank bailout plan renewed worries about the region's debt crisis.

Investors are worried that the weekend deal for Spain could further aggravate the nation's rising public debt, as attention turns to problems in Italy and a June 17th election in Greece that could determine the fate of the common currency bloc.

Most risk assets were stabilizing after markets experienced a roller-coaster ride yesterday when optimism over Spain's bailout gave way to the worries over its implementation.

The euro was little changed at $1.2504, below a high of $1.2672 hit on Monday, while Brent crude oil slipped below $98 a barrel, and gold edged down to $1,589.50 an ounce.

"The 'risk on' trade is over as investors look to the Greek elections and Italy," said Jeff Sica, president of SICA Wealth Management.

MSCI's world equity index  was down 0.25 per cent at 299.01 after ending 0.2 per cent lower yesterday, while the FTSE Eurofirst 300 index of top European shares was up 0.1 per cent at 984.25 points. The index had hit its highest since mid-May in the previous session.

Debt markets were little changed, with attention on an auction of relatively safe Austrian and Dutch bonds, which are expected to see good demand.

Reuters