2014.06.0305:06:51UTC+00European Shares Set to Decline as ECB Meeting Looms

European shares are anticipated to decline as the week's main event approaches. Traders stand by as precaution on the upcoming European Central Bank meeting on June 5 where it is anticipated that ECB President Mario Draghi will announce the banks new monetary policies particularly the cut-price loans, conditional liquidity, and negative interest rates.

FTSE is expected to go down 10 points to end at 6,854. Further predictions put Germany's DAX and France's CAC lower than 2 points to close at 9,948 and 4,513 respectively.

China's good manufacturing data on Monday that boost mining stocks was the best record in four months in May. These data might reinforce European shares, that is expected to drop on Tuesday, but right now all eyes are on the upcoming ECB meeting.

Thursday's European Central Bank Governing Council Meeting is foreseen to bring crucial effects on the market. Analysts predict ECB head Mario Draghi to implement new monetary policies but as to what the changes are and to what extent shall it cover, analysts are divided. Investors and other market participants are gauging the outcome of said meeting and preparing for any contingency.

Meanwhile, the Dow Jones Industrial Average and S&P500 closed at new record highs, continuing its incline since last month. The positive manufacturing data has boost the stocks to a third consecutive session high.