Budget cuts in the US are having a negative impact on European markets.
Stocks across the continent were expected to open lower this morning (March 4th) as a result of traders citing concerns over the US budget.
Capital Spreads dealer Jonathan Sudaria explained worries about the cuts being made in the US are acting as a block on European equity markets.
"European equity markets are set to edge lower on the open as sequester uncertainty bites," he was quoted as saying by Reuters.
The March futures contract for the euro zone's blue-chip Euro Stoxx 50 index was down by 0.9 per cent, while futures contracts for Germany's DAX and for France's CAC fell 0.8 per cent. The pan-European FTSEurofirst 300 index fell 0.2 per cent to 1,168.64 points on Friday and the Euro STOXX 50 dropped 0.6 per cent to 2,626.75 points.
Last week, the Stoxx Europe 600 was shown to be still up 3.6 per cent so far in 2013, indicating the resilience of stocks across the continent.
Find out about the Stoxx Europe 600 Index and spread betting strategies at City Index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.