Japan’s 8.9 earthquake and subsequent tsunamis on Friday have created a ripple effect across Europe. The Japanese market was down more than 6%, as more fears developed about the nuclear plants in Japan.
The UK’s FTSE 100 index, according to BGC Partners, is predicted to open 9 points lower at 5,819. Germany’s DAX index is predicted to fall 18 points, and France’s CAC index to lose 14 points.
In general, European share fell to their all time closing low for 2011 on Friday. On Monday, the finance ministers of the 17 countries that share the euro met in Brussels to evaluate their response to the sovereign debt crisis in their regions.
Finance Ministers Meet
Together, they agreed on a deal to strengthen the region’s €440 billion rescue fund and to lower the interest rates on Greece’s bail-out loans. They also backed a plan to use the rescue funds to help struggling governments by buying sovereign bonds.
Prior to this meeting of EU leaders, they met on Friday to discuss the instability in North Africa and to discuss ways to boost the area’s competitiveness.