European shares dip on U.S. budget standoff

Reuters

PARIS, Oct 4 (Reuters) - European shares dipped in earlytrade on Friday, extending their two-week slide as investorsworry the U.S. budget deadlock could have negative implicationson much more critical legislation to raise the U.S. federal debtceiling.

At 0707 GMT, the FTSEurofirst 300 index of top European shares was down 0.1 percent at 1,241.57 points.

The impasse between congressional Democrats and Republicansto pass an emergency funding bill, which has led to a third dayof a partial U.S. government shutdown, continued with littlesign of progress toward a solution.

The shutdown appeared likely to drag on for another week andpossibly longer, with no end in sight until the next crisis hitsWashington around Oct. 17, the date Congress must raise thenation's borrowing authority or risk default, and members ofCongress now expect it to be the flashpoint for a bigger clashover the budget and Obama's healthcare law.

The shutdown has delayed the closely-watched non-farmpayrolls data, which had been due on Friday. The data is a keyfactor for the Federal Reserve to consider when deciding toscale back its stimulus.

Shares in Deutsche Telekom bucked the trend,gaining 1.7 percent after UBS upgraded its recommendation on thestock to 'buy' from 'neutral'.

View Comments