European Factors-Shares seen opening higher, eyes on banks
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European Factors-Shares seen opening higher, eyes on banks
European Factors-Shares seen opening higher, eyes on banks
(20 Aug 2007)
(adds index futures, updates snapshot table)
FRANKFURT, Aug 20 (Reuters) - European shares look set to
track U.S. and Asian shares higher on Monday, building on the
previous session's gains that were fuelled by the Federal
Reserve's discount rate cut.
Financial bookmakers in London saw the FTSE 100 opening 11
to 20 points higher, the DAX rising 37 to 50 points, and the CAC
40 advancing 10 to 35 points.
"Given the input from New York a slightly higher opening can
be expected," said Heino Ruland, analyst at German brokerage
Steubing.
"But we have our doubts that the surprise cut in the
discount rate will be good enough to spark a longer lasting
sustainable upswing of equities," he said.
"The problem in the financial sector is worse than expected
by the Fed ... and fears are creeping up that the crisis of the
financial economy will spill over to the real economy, provoking
a significant slowdown of global growth in the year to come,"
Ruland added.
The September future <FCEU7> on the French CAC 40 <.FCHI>
was up 0.9 percent while the future <FDXU7> on Germany's DAX
<.GDAXI> was up 0.1 percent.
European equity investors will have little to go on in the
way of potentially market-moving set-piece events on Monday, as
both corporate earnings [WEU/EQUITY] and economic data <ECONAUG>
calendars are virtually empty.
Eyes are likely to remain on the effects of the U.S.
subprime mortgage crisis [ID:nL20620653] after news at the
weekend that a second German bank, SachsenLB, was in trouble and
had to be bailed out [ID:nL17597787].
((Reporting by Peter Starck, editing by Will Waterman;
frankfurt.newsroom@news.reuters.com; Reuters Messaging:
peter.starck.reuters.com@reuters.net; +49 69 7565 1217))
Keywords: MARKETS EUROPE FACTORS/
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