European Factors to Watch-Shares seen marginally higher at open
LONDON, Sept 27
LONDON, Sept 27 (Reuters) - European stocks are seen opening slightly higher on Friday, although investors expected ongoing U.S. budget and debt negotiations to keep indexes in a tight trading range.
Financial spreadbetters expected Britain's FTSE 100 to open up by 6 points, or 0.1 percent. Germany's DAX was seen up by 7-8 points, or 0.1 percent, while France's CAC was also seen up 0.1 percent or 5-6 points higher.
Global stock markets scaled fresh heights after the U.S. Federal Reserve on Sept. 18 decided to keep its economic stimulus programme of bond-buying - a plan known as "quantitative easing" (QE) which has boosted equities - unchanged for now.
But investors have since used issues such as talks in the United States to increase the country's borrowing authority as a cursor to trim back equities in order to cash in profits on the earlier rally.
Political uncertainty in Italy has also held back European equities, with Italy's FTSE MIB equity index falling on Thursday after renewed threats from former premier Silvio Berlusconi's centre-right party to pull out of the country's fragile coalition government.
The FTSEurofirst 300 hit a fresh 5-year high of 1,274.59 points on Sept 19, but has since edged back by around 1.3 percent and has traded within a 15-point trading range. The index remains up by 11 percent since the start of 2013.
Central Markets chief strategist Richard Perry said that while U.S. politicians had historically always managed to reach an agreement to avert any debt default, equity markets would not make much headway until a new U.S. debt deal was reached.
"History shows that these decisions tend to go right down to the wire, and typically the decisions are always in favour of the markets," he said.
"However, the markets will remain on edge while the battle ... rumbles on, so expect markets to remain range bound until the decision due on Oct. 1." -------------------------------------------------------------------------------- > GLOBAL MARKETS-Asian shares firm, but U.S. budget impasse constrains
> Wall St ends 5-day losing streak on job data; Nike up after the bell > Nikkei eases in choppy trade, Abe's tax plan in focus > TREASURIES-Prices edge lower as jobless claims near six-year low > FOREX-Dollar steady, focus on U.S. budget brinkmanship and Fed > PRECIOUS-Gold headed for 5th straight weekly fall on stimulus outlook > METALS-London copper edges up on China demand, steady on week > Brent slips below $109 on easing Mideast tension, on track for 3rd weekly drop