Euro equities open lower this morning
European equities have opened lower this morning on news that US lawmakers have failed to make any agreement over either the shutdown or the debt ceiling over the weekend. And risk assets are likely to keep hurting the longer this goes on, perhaps presenting an opportunity to those who doubt the reality of a US default.
The FTSE 100 struggles to hold 6,400 as traders look to rebalance against downside risk this morning. A lot of what has performed strongly over the past three months within the index is experiencing an element of mean reversion, allowing investors a chance to participate at lower prices. But the feeling at present is one of nerves, making putting money to work easier said than done.
Investors will be watching dollars, gilts and gold for an idea of risk appetite tied to US news flow and will be fast to act if changes occur. Gold trades unchanged at $1,310.