European Factors to Watch-Shares seen hitting 2-wk high on likely U.S. deal
Tue Oct 15, 2013 6:31am BST
LONDON, Oct 15 (Reuters) - European shares were expected to hit a two-week
high on Tuesday, mirroring gains on Wall Street and in Asia, on rising optimism
that U.S. lawmakers would soon agree on a deal to re-open their government and
avoid a possible debt default.
U.S. Senate Majority Leader Harry Reid, a Democrat, and his Republican
counterpart, Mitch McConnell, ended a day of talks on Monday, with Reid saying
they had made "tremendous progress".
The plan under discussion would end a partial government shutdown and raise
the debt ceiling by enough to cover the nation's borrowing needs at least
through mid-February 2014, according to a source familiar with the negotiations.
Financial spreadbetters predicted Britain's FTSE 100 would open 31
to 33 points, or as much as 0.51 percent, higher, Germany's DAX would
gain 37 to 39 points, or as much as 0.45 percent, and France's CAC 40
would rise 19 to 20 points, or as much as 0.47 percent.
The FTSEurofirst 300 index of top European shares ended 0.1 percent
higher in the previous session and a further rise on Tuesday would push the
index to its highest level since early October. U.S. stocks
closed 0.4 to 0.6 percent higher on Monday, while MSCI's broadest index
of Asia-Pacific shares outside Japan rose 0.8 percent on
Tuesday.