European Factors to Watch-Shares seen edging higher despite U.S. shutdown
Tue Oct 1, 2013 6:40am BST
LONDON, Oct 1 (Reuters) - European shares were seen edging higher on
Tuesday, unfazed for now by a shutdown of the U.S. government that investors
hope will be resolved soon and helped by a positive session in Asia.
The first U.S. government shutdown in 17 years put up to 1 million workers
on unpaid leave from midnight, threatening to hamper an economic recovery that
had been growing in strength.
But analysts in morning notes were optimistic that the two sides would get
back to the table soon, with conservative Republicans facing polls showing they
will be blamed for the shutdown.
"Now that government workers are having their pay cheques stopped and
Washington's incompetence is having real consequences on the man in the street,
it's slightly easier for one side to compromise," Capital Spreads said in a
note.
"So markets are expecting an agreement to be on the horizon soon. However,
the major concern for traders will be if the shutdown continues until Friday and
the Bureau of Labour Statistics has to postpone the main event of the week, the
non-farm payrolls."
Financial spreadbetters predicted Britain's FTSE 100 to open 1 to 4
points higher, or as much as 0.1 percent, Germany's DAX to gain 20 to
26 points, or as much as 0.3 percent, and France's CAC 40 to rise 7 to
10 points, or as much as 0.2 percent.