Spreadbetters see Europe stocks edge up on Obama win

LONDON Wed Nov 7, 2012 1:16am EST

LONDON Nov 7 (Reuters) - Financial spreadbetters expect Europe's main stock indexes to edge higher at the open on Wednesday after a U.S. election victory for President Barack Obama removed uncertainty over leadership of the world's biggest economy.

However gains are likely to be limited as attention switches to the so-called "fiscal cliff" of some $600 billion of spending cuts and tax increases that threaten to send the United States back into recession next year. To avoid the grave consequences for the economy and markets, Obama now faces tough negotiations with Republicans.

Spreadbetters expect Frankfurt's DAX to gain 15 to 41 points, or as much as 0.6 percent and Paris' CAC 40 to rise 1 to 10 points, or as much as 0.3 percent.

London's FTSE 100 is seen opening mixed, with calls ranging from down 2 points to up 9 points.

Futures on U.S. benchmark S&P 500 traded down 4.2 points, or 0.3 percent at 1,419.80 points by 0605 GMT, off a session low of 1,411.20.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.