November 8, 2012 / 6:55 AM / 5 years ago

European Factors to Watch-Shares to bounce back in early trade

LONDON, Nov 8 (Reuters) - European shares were set to rise on Thursday, with
the previous day's sell-off seen prompting some investors to buy cheaper stocks,
although mounting worries about a looming U.S. fiscal crisis were likely to
limit gains.
    The European stock market is expected to get some support from a rise in
U.S. stock futures after Wednesday's sharp declines and as Greece approved an
austerity package needed to unlock vital aid and avert bankruptcy.
    Asian markets fell overnight, however, on worries that a potential $600
billion in spending cuts and tax rises next year could drive the United States
back into recession.
    Focus will also be on the European Central Bank, which is expected to leave
interest rates on hold on Thursday. Investors will keep a close eye on ECB
President Mario Draghi's press conference for hints of whether Spain is any
closer to asking for financial support.
    The Bank of England, which also holds a meeting later in the day, is likely
to opt narrowly against another cash injection to support the economy.
    Financial spreadbetters predicted Britain's FTSE 100 to open 25 to
24 points higher, or as much as 0.6 percent, Germany's DAX to gain 36
to 47 points, or as much as 0.7 percent, and France's CAC 40 to rise 10
tp 27 points, or as much as 0.8 percent.
     MARKET SNAPSHOT AT 0642 GMT                                     
                                                   LAST     PCT CHG    NET CHG
     S&P 500                                   1,394.53     -2.37 %     -33.86
     NIKKEI                                    8,837.15     -1.51 %    -135.74
     MSCI ASIA EX-JP                                        -1.19 %      -6.27
     EUR/USD                                     1.2768     -0.02 %    -0.0002
     USD/JPY                                      79.91      -0.1 %    -0.0800
     10-YR US TSY YLD                             1.674          --       0.03
     10-YR BUND YLD                               1.380          --       0.01
     SPOT GOLD                                $1,718.64      0.14 %      $2.33
     US CRUDE                                    $85.14      0.83 %       0.70
    * Asian shares tumble as U.S. fiscal cliff looms             
    * Japan Nikkei drops to 1-week low on U.S. fiscal worries    
    * Wall St sinks after election as 'fiscal                    
    * Yen hits 1-month high vs euro on risk aversion             
    * Brent inches above $107 after slump                        
    * LME copper inches up from 2-mth low, US fiscal woes weigh  
    * Gold flat as US fiscal worries support dollar              
    * U.S. 10-year note extends gain to point
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