European Factors to Watch-European shares seen mixed at open

Fri Oct 25, 2013 1:15am EDT

LONDON, Oct 25 (Reuters) - European shares were seen opening mixed on
Friday, with financial spreadbetters calling the UK market higher but
forecasting falls in Germany and France as the region's equity indexes pause for
breath after hitting fresh highs this week.
    Spreadbetters expected Britain's FTSE 100 to open unchanged to up by
7 points, which would represent a rise of as much as 0.1 percent.
    Germany's DAX was seen opening 8-27 points lower, or down by as
much as 0.3 percent, while France's CAC 40 was seen falling by 4-15
points, or down by as much as 0.4 percent.
    Traders said a fall overnight in Asian markets would put some pressure on
European shares early on, while adding that the fact that some key European
equity indexes were hitting "overbought" territory in technical terms might lead
some investors to sell to cash in on the rally so far.
    "European markets continue to look the strongest, but look a little
stretched in the near term," Central Markets chief strategist Richard Perry
wrote in a note.
    Germany's DAX, which hit new record highs this week, has a relative
strength indicator (RSI) reading of 75.8 - above the 70 point level which shows
that an index is in technically "overbought" territory.
    The pan-European FTSEurofirst 300 index, which hit new five-year highs this
week, also has a RSI reading around the 70 point level.
    On the macroeconomic front, German IFO and UK gross domestic product (GDP)
figures are due out on Friday, while later in the day U.S. durable goods orders
data will be published.     
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 MARKET SNAPSHOT AT 0511 GMT                                   
                                              LAST    PCT CHG       NET CHG
 S&P 500                                  1,752.07     0.33 %          5.69
 NIKKEI                                  14,157.90    -2.27 %       -328.51
 MSCI ASIA                                  550.11    -0.77 %         -4.25
 EX-JP                                                         
 EUR/USD                                    1.3816     0.12 %        0.0017
 USD/JPY                                     97.03    -0.25 %       -0.2400
 10-YR US TSY                                2.505         --         -0.02
 YLD                                                           
 10-YR BUND YLD                              1.773         --          0.01
 SPOT GOLD                               $1,344.51    -0.15 %        -$2.03
 US CRUDE                                   $97.39     0.29 %          0.28
  > GLOBAL MARKETS-Asian stock markets fall, dollar near 2-yr low vs euro 
    
  > US STOCKS-Wall St gains on Fed hopes; Amazon.com up after the bell 
  > Nikkei falls, heads for 1st weekly loss in 3 weeks; Murata jumps 
  > TREASURIES-U.S. bond yields bounce off 3-month lows as rally pauses 
  > FOREX-Dollar on defensive, hits fresh 2-year low vs euro 
  > PRECIOUS-Gold set for second weekly gain on U.S. stimulus hopes 
  > METALS-Copper set to end down for 3rd week in four on demand doubts 
  > Brent rises above $107 on demand hopes; fading supply woes weigh
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