European Factors to Watch-Prospect of U.S. debt deal to lift shares
Fri Oct 11, 2013 6:15am BST
LONDON, Oct 11 (Reuters) - European stocks are seen rising for a second
session on Friday, with the prospect of U.S. politicians reaching a deal on the
country's debt ceiling expected to lift the region's stock markets.
Financial spreadbetters expect Britain's FTSE 100 to open up by
41-43 points, which would mark a rise of 0.7 percent. Germany's DAX was
seen opening 53-60 points higher, or up 0.7 percent while France's CAC 40
was seen opening 12-19 points higher, or up 0.5 percent.
Global equities have lost ground this month after the U.S. government
partially shut down due to a stalemate over the country's budget. This has led
to concerns about the $16.7 trillion U.S debt ceiling, which Treasury Secretary
Jack Lew said the government will hit no later than Oct. 17.
President Barack Obama and Republican leaders appeared ready to end the
deadlock after meeting at the White House on Thursday. Talks continued into the
night and one senior Republican said an agreement could come on Friday, though
hurdles remain.
Expectations of a U.S. debt deal enabled the pan-European FTSEurofirst 300
to snap a three-day losing streak to rise 1.7 percent to 1,245.09
points on Thursday, marking its biggest daily gain in a month after falling to
its lowest level since Sept. 5 in the previous session.
"Concern over the U.S. shutdown and then the debt limit had ground away at
valuations but the meeting between Obama and the Republicans has been
interpreted as a positive sign by markets that the stalemate may be over,"
Capital Spreads dealer Jonathan Sudaria wrote in a note.