European stocks weaken on U.S. fiscal jitters

LONDON Mon Dec 17, 2012 4:12am EST

LONDON Dec 17 (Reuters) - European shares turned negative on Monday, at the start of what is likely to be a volatile week, with investors anxious over U.S. budget talks which remain at an impasse.

As many in the market are positioned for a deal on the U.S. budget to be struck, any news to the contrary could open the way to fresh index falls, especially in seasonally thin year-end trading volumes.

The FTSEurofirst 300 was down 0.3 percent at 1,130.22 by 0906 GMT, in volume at 14 percent of the 90-day daily average.

"We're a bit jittery here that there's not going to be significant progress and as the week goes on I expect volume to dry up and volatility to increase unless any deal's done," Joe Rundle, head of trading at ETX Capital, said. (Reporting by Tricia Wright; Editing by Toni Vorobyova)

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