European shares are set to rise on Monday, adding to Friday's advance on the region's move towards deeper economic integration to prevent future debt crises, although gains could be short lived as concerns about ways to solve the present crisis remain.
Financial spreadbetters expected Britain's FTSE 100 to open 11 to 13 points higher, or as much as 0.2 percent, Germany's DAX to gain 23 to 26 points, or as much as 0.4 percent, and France's CAC-40 to rise 8 to 10 points, or as much as 0.3 percent.
Markets are understandably looking at the broader success of the European leaders summit at the end of last week. We're currently eyeing higher starts across London, Paris and Frankfurt, said Chris Weston, trader at IG Markets.
However, the outcome of a two-day European Union summit on Friday left financial markets uncertain about whether and when more decisive action would be taken to stem the debt crisis that now threatens France and even economic powerhouse Germany. A new treaty could take three months to negotiate and may require risky referendums in countries such as Ireland.
Some analysts said that the positive momentum could last for a little longer, but concerns about the pace of economic growth in Europe and the ability of some euro zone countries to manage their debt burden could put pressure on equities.
Miners could witness a sell-off as key base metals prices slipped on worries about demand for raw materials. Copper prices fell 1.5 percent, while nickel was down 1.3 percent.
The pan-European FTSEurofirst 300 index of top shares closed 1.3 percent higher at 985.81 points on Friday after falling 1.5 percent in the previous session after ECB President Mario Draghi on Thursday dampened hopes the central bank would increase bond purchases.
(Reporting by Atul Prakash; Editing by Hans-Juergen Peters)