European Factors to Watch - Shares to edge lower ahead of U.S. jobs data
Tue Oct 22, 2013 6:19am BST
LONDON, Oct 22 (Reuters) - European stocks are seen opening flat to slightly
lower on Tuesday, pulling back from five-year highs set in the previous session
after eight straight days of gains, with trade cautious ahead of U.S. jobs data.
Financial spreadbetters expect Britain's FTSE 100 to open 2 to 3
points lower, or flat in percentage terms, Germany's DAX to open down 5
to 7 points, or as much as 0.1 percent lower, and France's CAC 40 to
open down 5 to 7 points, or as much as 0.2 percent lower.
Bets that the U.S. government shutdown may mean the U.S. Federal Reserve
maintains its stimulus programme for longer than expected has spurred a rally in
European stocks over the last week and a half.
September's nonfarm payrolls data, released on Tuesday after a delay due to
the partial government closure, is likely to offer clues on the strength of the
economic recovery, and thus on how long the Fed might maintain its easy policy
stance.
The pan-European FTSEurofirst 300 index closed up 0.3 percent at
1,281.09 points on Monday, a five-year closing high, buoyed by reassuring
earnings updates from Philips and SAP.
Tuesday is one of the busier days so far in the European earnings season,
with Novartis, BHP Billiton and Reckitt Benckiser all
releasing results.