July 23 (Reuters) – Financial bookmakers expected to see the leading European benchmark indexes opening flat on Friday, following the previous session’s rally, as investors eagerly awaited results from the banking sector’s stress tests.
Financial spreadbetters expected Britain’s FTSE 100 .FTSE to open down 1 point to up 1 point, Germany’s DAX .GDAXI unchanged to up 1 point, and France’s CAC-40 .FCHI down 1 to 2 points.
In an effort to calm investors’ jitters over the potential impact of the euro zone debt crisis on Europe’s banking system, regulators are assessing how 91 banks across Europe would cope with another economic downturn, and the results are expected to be published on Friday.
“At this point, the market seems to have priced in the tests, as investors believe Europe won’t shoot itself in the foot by revealing very negative surprises. But to be credible, there has to be some damage,” said Christian Parisot, chief economist at Aurel BGC.
(Reporting by Blaise Robinson and Florent Le Quintrec; Editing by Helen Massy-Beresford)