By RTT News, September 26, 2013, 06:56:00 AM EDT
(RTTNews.com) - The German market is trading lower on Thursday, as worries about a possible government shutdown in the U.S. continue to weigh on sentiment, ahead of some key data from the world's largest economy.
The U.S. Government will reach its borrowing limit next month and the debt ceiling has to be raised by Congress, which requires a consensus between the White House and the Republican lawmakers.
Treasury Secretary Jack Lew sent a letter to Congress on Wednesday warning that the extraordinary measures the Treasury is employing to preserve U.S. borrowing capacity would be exhausted no later than October 17.
Reports on jobless claims, pending home sales and second quarter GDP from the U.S. are slated for release later in the global day, which may help shape the direction of the Federal Reserve's tapering plans at its next meeting in October.
Closer home, confidence among French consumers improved for a third consecutive month to reach a seven-month high in September, latest figures from Insee revealed. The headline consumer confidence index rose to 85 in September from 84 in August, in line with expectations.
The U.K. economy expanded 0.7 percent sequentially in the second quarter as estimated in August, final data from the Office for National Statistics showed. However, the first quarter growth was revised up marginally to 0.4 percent from 0.3 percent.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.49 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.26 percent.
The DAX index is currently losing 0.4 percent.
Commerzbank and Deutsche Bank are declining 2.2 percent and 1.4 percent, respectively.
Automakers Volkswagen and BMW are in negative territory.
Jenoptik is falling 1.5 percent. Berenberg cut the stock to ''Hold'' from ''Buy.''
Beiersdorf is moderately higher despite a broker downgrade at Credit Suisse.
Elsewhere in Europe, the French CAC 40, the UK's FTSE 100 and Switzerland's SMI are in negative territory.
In Asia, stocks pared early losses to end mostly higher, with Japanese shares leading the gainers.
In the U.S., futures point to a higher open on Wall Street. U.S. stocks dropped overnight, with the Dow and the S&P 500 extending declines for the fifth straight session. The major indexes ended down between 0.2 percent and 0.4 percent.
In the commodity space, crude for November delivery is adding $0.05 to $102.71 per barrel while December gold is losing $1.1 to $1335.1 a troy ounce.
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