European Factors to Watch-Shares seen steady, U.S. in focus
Wed Sep 25, 2013 7:39am BST
LONDON, Sept 25 (Reuters) - European shares were expected to edge lower
early on Wednesday, mirroring losses in U.S. and Asian equity markets, with
investors seen trading cautiously before an agreement on the U.S. spending bill
that still faces some resistance.
Congressional authorisation for the U.S. government to spend money runs out
at the end of the fiscal year on Sept. 30, unless Congress passes a "continuing
resolution" to keep the government running. U.S. politicians are engaged in
serious discussions, but have not yet found a common ground.
U.S. Senate Republicans on Tuesday appeared to fall in line with their
leaders who want to pass an emergency spending bill and avoid government
shutdowns.
"With the ... deadline fast approaching, fears over a partial government
shutdown and a failure to raise the debt ceiling, which would result in the U.S.
defaulting on its debt, are continuing to act as a drag on equity markets,"
Craig Erlam, analyst at Alpari said in a note.
"With little progress being made in these negotiations, investors are likely
to remain somewhat risk averse again."
At 0634 GMT, futures for the Euro STOXX 50, UK's FTSE 100,
Germany's DAX and France's CAC were 0.1 to 0.2 percent lower.
The FTSEurofirst 300 index of top shares closed 0.2 percent higher
at 1,258.18 points in the previous session. The index, which climbed to a
five-year high last week, is still up 11 percent so far this year.
Investors will keep a close eye on macroeconomic numbers after German
consumer confidence rose to its highest level in six years heading into October,
supporting expectations strong consumer spending will help Europe's largest
economy to post moderate growth in 2013.
Later in the session, focus will be on U.S. weekly mortgage data due at 1100
GMT, new home sales numbers for August at 1400 GMT and U.S. durable goods orders
figures at 1230 GMT.