Europe shares turn positive on hopes of U.S. debt deal

PARIS Wed Oct 16, 2013 10:08am EDT

PARIS Oct 16 (Reuters) - European shares erased losses and turned positive on Wednesday afternoon, while German Bund futures moved lower on mounting expectation of an imminent deal in Washington to avert a damaging U.S. debt default.

At 1405 GMT, the FTSEurofirst 300 index of top European shares was up 0.2 percent at 1,265.54 points.

German Bund futures extended losses to hit a session low of 138.79, down 45 ticks on the day.

A senior Senate Democratic aide said on Wednesday the Senate negotiations on legislation to raise the country's debt limit and reopen government agencies are nearing completion and a deal could be announced soon.