European Factors to Watch-Shares set to continue bounce on U.S. optimism

miércoles 26 de marzo de 2014 03:29 GYT

LONDON, March 26 (Reuters) - European stocks were seen rising at the open on Wednesday, buoyed by increasing signs of life in the U.S. economy, with a key index set to continue a rally off a one-week closing low back towards multi-year highs.

At 0720 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were 0.3-0.5 percent higher.

Stock markets in Europe were broadly expected to track gains made in Asian and U.S. trade, where buoyant U.S. consumer confidence and house prices helped to fuel gains.

The two reports were the latest in a series of positive data releases from the United States, supporting the view that bad weather rather than inherent economic weakness affected weaker reports earlier this year.

"Concerns around the three C's (cold, Crimea, China) are dropping off as the effect of the US winter subsides, the Crimean conflict is no longer affecting markets and China has seen stimulation bets ramping up," Evan Lucas, market strategist at IG, said in a note.

"This will mean markets will continue to push higher in the short term, with the US and China currently driving most market reactions; and signs of stability or growth will be equity and commodity supportive."

Growing bets that China will act to stimulate its economy and an increased resilience to uncertainty over relations between Russia and the West over Crimea helped to support European equity markets on Tuesday.

The pan-European FTSEurofirst 300 rose 1.3 percent in the previous session, bouncing off a one-week closing low set at the start of the week.

The index remains 3 percent off its closing high in February, however, which was its highest close since May 2008.   Continuación...