* FTSEurofirst 300 up 0.5 pct, Euro STOXX 50 up 0.4 pct
* DAX hits record high, CAC 40 reaches 5-year high
* Burberry drops 5 pct after CEO leaves
* Nexans sinks 13 pct on profit warning, capital increase
By Blaise Robinson
PARIS, Oct 15 European shares rose early on
Tuesday, gaining ground for the fourth session in a row, boosted
by signs that a deal could soon be reached in Washington to
avert a damaging debt default.
At 0726 GMT, the FTSEurofirst 300 index of top
European shares was up 0.5 percent at 1,259.15 points, while the
euro zone's blue-chip Euro STOXX 50 index added 0.4
percent to 2,988.35 points, hitting a fresh 2-1/2 year high.
Positive signals from talks on Monday between Democrat and
Republican Senate leaders fuelled hopes of an imminent deal to
reopen shuttered U.S. federal agencies and prevent a default on
federal debt, sending world stocks higher.
"Relief that politicians have taken the U.S. to the edge and
back again is clear," said Keith Bowman, equity analyst at
The plan under discussion would end a partial government
shutdown and raise the debt ceiling by enough to cover the
nation's borrowing needs at least until mid-February 2014.
Around Europe, the UK's FTSE 100 index was up 0.6
percent, France's CAC 40 was up 0.3 percent, reaching a
five-year high, and Germany's DAX index was up 0.5
percent, hitting a record high.
"The consensus is bullish, everyone believes that a deal
will be reached, so it could already be priced in," said
Guillaume Dumans, co-head of research firm 2Bremans.
"Deal or no deal, the size of the U.S. debt remains abyssal,
and given the excess of optimism on the market right now, we
could get a pull-back."
Shares in UK luxury goods maker Burberry Group
dropped 5 percent following the departure of long-standing boss
Angela Ahrendts to Apple.
Casino rose 3.6 percent after the French
supermarket chain said sales growth accelerated in the third
quarter thanks to robust demand in Brazil.
French cable maker Nexans plummeted 13 percent
after slashing its profit outlook and unveiling a capital
Investors will keep a close eye on U.S. corporate results on
Tuesday, with several major U.S. companies including Citigroup
, Intel, Johnson & Johnson and Yahoo
scheduled to report earnings.
On the macroeconomic front, focus will be on German ZEW
economic sentiment indicator, seen at 49.6, at 0900 GMT.