By RTT News, September 27, 2013, 06:39:00 AM EDT
(RTTNews.com) - The European markets are trading lower on Friday, as U.S. lawmakers continue to wrangle over legislation to avoid a government shutdown at the end of the month. Investors exercised caution even as Eurozone economic confidence rose more than expected in September.
House Speaker John Boehner, R-Ohio, at a press conference on Thursday, previewed upcoming House legislation that he said would tie an increase in the debt limit to spending cuts and pro-growth reforms.
Noting that President Barack Obama has repeatedly refused to negotiate over raising the debt limit, Boehner said, "Well, I'm sorry, but it just doesn't work that way."
On the economic front, Eurozone economic confidence rose more than expected in September with markedly improved confidence across all business sectors, the European Commission said. The economic sentiment index climbed to 96.9 in September from 95.3 in August and stayed above consensus of 96.
At 8.00 am ET, Germany's preliminary consumer price data is due. Consumer price inflation is seen unchanged at 1.5 percent in September and EU harmonized inflation at 1.6 percent.
Reports on personal income and spending and consumer sentiment are due from the U.S. later in the global day, which may provide further indications regarding the strength of the world's largest economy.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.45 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.35 percent.
The German DAX is losing 0.4 percent and the French CAC 40 is falling 0.3 percent. The UK's FTSE 100 is declining 0.6 percent while Switzerland's SMI is sliding 0.2 percent.
In Frankfurt, HeidelbergCement is losing 2.5 percent after HSBC cut the stock to ''Neutral'' from ''Overweight.''
K+S and ThyssenKrupp are dropping 2.3 percent and 1.8 percent, respectively.
Linde, which announced its new chief executive, is falling 0.7 percent.
Hugo Boss is declining 2.1 percent. Berenberg reduced the stock to ''Hold'' from ''Buy.''
In Paris, Metal fabrication firm Vallourec said weakening of the Brazilian real against other currencies would have a negative translation impact on the second-half results. The stock is plunging 9 percent.
Solvay is losing 3.5 percent and Danone is down 1.8 percent.
Berenberg raised Axa to ''Buy'' from ''Hold.' The stock is down 0.6 percent.
In London, Persimmon is declining 4.2 percent and SABMiller is falling 2.4 percent.
Antofagasta, Vedanta Resources, Rio Tinto, Anglo American and BHP Billiton are losing between 3.7 percent and 1.8 percent.
Michael Page is gaining 2.4 percent after Goldman Sachs raised the stock to ''Buy'' from ''Neutral.''
Holcim is losing 1.6 percent in Zurich. The stock was lowered to ''Neutral'' from Overweight'' at HSBC.
Vestas Wind Systems is surging nearly 12 percent in Copenhagen. The wind turbine maker has agreed to form a joint venture with Japanese Mitsubishi Heavy Industries Ltd. for offshore wind energy.
Asian stocks ended broadly higher, although sentiment remained cautious amid concerns over U.S. budget negotiations and the debt ceiling that risk a government shutdown in four days.
In the U.S., futures point to a lower open on Wall Street. U.S. stocks posted modest gains overnight, after data showed jobless claims unexpectedly fell to a near six-year low last week and the U.S. economy expanded at an annual rate of 2.5 percent in the second quarter, unrevised from the previous estimate.
The Dow and the S&P 500 rose about 0.4 percent each, while the tech-heavy Nasdaq added 0.7 percent.
In the commodity space, crude for November delivery is losing $0.54 to $102.49 per barrel while December gold is adding $0.2 to $1324.3 a troy ounce.
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