European stocks seen up on China, EU summit hopes (Reuters)

Via Wei Yao of Societe Generale, ...and what it means for the rest of the world

George Soros, one of the most outspoken critics of Germany’s proposed austerity policies to solve the European debt crisis, said the euro is here to stay and will gain as other nations seek to devalue their currencies. Soros, who made US$1-billion shorting the British pound in 1992, said that while the causes of the euro crisis haven’t been solved, the acute phase of the turmoil is over. Germany will always do “the minimum” to preserve the currency, Soros said Thursday at the World Economic Forum in Davos, Switzerland. He forecast a “tense” two years for the euro region.

U.S. stock futures pointed to a higher open, lifted by hopes that a much-awaited summit of euro-zone leaders will present a convincing plan to handle the region's debt crisis.

The euro-area economy will shrink in back-to-back years for the first time, driving unemployment higher as governments, consumers and companies curb spending, the European Commission said. Gross domestic product in the 17-nation region will fall 0.3% this year, compared with a November prediction of 0.1% growth, the Brussels-based commission forecast Friday. Unemployment will climb to 12.2%, up from the previous estimate of 11.8% and 11.4% last year.

TOKYO (Reuters) - Asian shares rose and the euro steadied on Tuesday, keeping gains from the previous day as investors grew more confident about European leaders coming to a broad agreement to contain the region's debt crisis.

Wall Street is gearing up for a lower open Monday as political turmoil in Italy sparks worry the euro zone debt crisis could consume the region's third largest economy.