European Factors to Watch-Shares seen lower on profit taking
Thu Oct 17, 2013 6:33am BST
LONDON, Oct 17 (Reuters) - European shares were expected to edge lower on
Thursday, with a last-minute deal to end the U.S. government shutdown and avert
a debt default prompting some investors to take profits from the previous day's
gains.
"It sounds counter-intuitive to have such a deflated reaction, but those who
took a speculative punt on a deal being done will be looking to cash in their
chips this morning," Jonathan Sudaria, dealer at Capital Spreads, said in a
note.
The U.S. deal offers only a temporary fix as it funds the government until
Jan. 15 and raises the debt ceiling until Feb. 7, with the markets facing the
possibility of another bitter budget fight and shutdown early next year.
Financial spreadbetters predicted Britain's FTSE 100 to open 9 to 10
points lower, or as much as 0.2 percent, Germany's DAX to fall 9
points, or 0.1 percent, and France's CAC 40 to drop 8 to 9 points, or as
much as 0.2 percent.
In the previous session, the euro zone's blue-chip Euro STOXX 50
index rose 0.4 percent to 3,015.40 points, a level not reached since May 2011,
on expectations of a U.S. budget deal. Germany's DAX index gained 0.5
percent after hitting a record high.