London’s blue chips are tipped to open lower as another day passed without politicians agreeing a solution to the US debt ceiling and government shutdown crises.
Financial bookmakers expect Footsie will open about ten points lower, reversing some of yesterday’s 41 point gain to 6,549.
Other European markets were also strong with Germany’s Dax closing at all-time high on signs of Europe’s recovery picking up and business sentiment rising sharply.
It was a different story in the US overnight where markets were weak on the disappointment that yet another series of meetings over the debt issues had failed to reach an agreement.
Talks between senior Republican and Democrat politicians are set to resume today.
Reports from the US media indicate that a deal, albeit a short-term patch–up, will be agreed before tomorrow’s borrowing limit deadline, though traders said similar sentiments were expressed yesterday.
Dow Jones closed down 133 points at 15,168, with Nasdaq and the S&P 500 also lower.
The unease spread to Asian markets with falls across the region, though it was Hong Kong and Shanghai that bore the brunt of the selling.
There is a smattering of company news scheduled in the UK today.
Newspaper distributor Smiths News is set to announce a decent increase in full-year profits, while updates from online gamer 888 and silver miner Hochschild Mining should also be keenly watched.