After a stormy week where markets have been dampened by 'Fiscal Cliff' negotiation rumours and the entrenched positions of the Republicans and Democrats about raising tax thresholds for Americans who earn more than $250,000 a year to a maximum of about 39% and extending tax cuts worth on average $1000 for the rest of the national work force. Against that background here is Reuters view about how the markets will open today.
LONDON, Nov 16 (Reuters) - European stocks are seen opening fractionally
lower on Friday, within their recent range, as investors position defensively
for the start of budget talks in the United States and Europe's poor economic
prospects.
Financial spreadbetters expected Britain's FTSE 100 to open 6 to 8
points lower, or as much as 0.2 percent, and France's CAC 40 to open 7
points lower, or as much as 0.2 percent.
The Euro STOXX 50 index fell 11 points, or 0.5 percent, to
2,461.63 points on Thursday after data showed the euro zone had slipped intorecession, amid fears of a deadlock in U.S. talks aimed at avoiding a 'fiscal
cliff' of automatic spending cuts and tax hikes.
President Barack Obama and Republican and Democratic leaders of Congress
meet later on Friday for deficit reduction talks."This week's earlier verbal skirmishes have painted a particularly hard line
stance on both sides so if the talks prove to be as equally uncompromising
markets could take another leg lower," Jonathan Sudaria, a dealer at Capital
Spreads, said.
The Euro STOXX 50 was keeping within the 60-point range it has traded in
since last Friday and hovering around 2,462, the neck-line of a reversal
chartist pattern known as a 'head and shoulders', consisting of a major rally
between two smaller spikes.
A close below 2,462 would could see the index test support at 2,400, which
triggered a rebound last Friday and in October.
