European Factors to Watch-Shares seen up, focus on Greece and China
(Updates futures prices, adds company news)
LONDON, July 8 (Reuters) - European shares headed for a higher open on Wednesday, mirroring gains on Wall Street, after euro zone members gave Greece until the end of the week to come up with a proposal for sweeping reforms in return for loans.
Under a timetable agreed by the 19 leaders of the common currency area, Greece will submit on Wednesday a formal request for a two-year loan programme, with a first list of reform commitments to be spelled out in greater detail on Thursday. French President Francois Hollande said the European Central Bank would ensure that Greek banks had the minimum necessary liquidity to stay afloat until Sunday.
"The Europeans last night set the framework around which potential progress can be achieved over the next few days. Whether the Greek side is prepared to accept this remains an open question," Deutsche Bank said in a note. "The future of Greece's position in the euro zone is likely to be decided by the end of the week."
Futures for the Euro STOXX 50 index, Germany's DAX, France's CAC and Britain's FTSE 100 were 0.2 to 0.6 percent higher by 0609 GMT.
The pan-European FTSEurofirst 300 closed 1.6 percent lower in the previous session, while the euro zone's blue-chip Euro STOXX 50 index fell 2.1 percent.
However, U.S. stocks ended higher after a choppy session on Tuesday, as a rebound in U.S. oil prices helped offset concerns about a slowdown in China and the Greek debt crisis.
Commodity stocks will be in focus after Asian shares slipped to a 1-1/2-year low on Wednesday as Chinese stocks struggled to pull out of a tailspin. The drop in China extended a correction that has clipped 30 percent off Chinese shares since mid-June, threatening a new blow to the country's already slowing economy despite a slew of market support steps from Beijing.
In Britain, Finance Minister George Osborne, fresh from May's election victory, will say later in the day how he plans to reshape the economy by chopping welfare spending, easing the tax bill for workers and tackling some of the biggest challenges facing the recovery. Continuación...