US budget cuts ‘affecting European markets’

<p>European markets are being affected by US budget cuts.</p>

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.

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