European shares dip as U.S. budget stalemate drags on

PARIS Tue Oct 8, 2013 3:10am EDT

PARIS Oct 8 (Reuters) - European stocks dipped on Tuesday, losing ground for the fourth time in five sessions as investors continued to move to the sidelines, rattled by the lack of significant progress in resolving the U.S. budget standoff.

At 0703 GMT, the FTSEurofirst 300 index of top European shares was down 0.1 percent at 1,240.37 points.

As the partial U.S. government shutdown entered a second week, investors worry that Republicans and Democrats won't reach an agreement on the budget as well as on the debt ceiling ahead of the Oct. 17 deadline, which could result in a U.S. debt default.

"No one has the confidence or nerve to place any sizable positions," Capital Spreads trader Jonathan Sudaria said in a note.

"The bulls are cautious of a prolonged stalemate and the bears are fearful of any surprise deal being done so the only trading of note is by those taking profits after the September run up."

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