LONDON, Nov 19 (Reuters) - European stocks rose early on
Monday, bouncing from a 3 1/2-month closing low, on signs
political negotiations to overcome major fiscal policy
disagreement in the United States had started well.
On Friday, leaders of the U.S. Senate and House said they
would be flexible in efforts to settle fiscal policy differences
to avert a $600 billion 'fiscal cliff' of tax hikes and spending
cuts, sparking a late rally on Wall Street.
"The rebound should be quite significant because there are
new hopes regarding the fiscal cliff and last week was quite
bad," a London-based trader said.
He expected France's CAC 40, up 1 percent at
3,374.00 points at 0801 GMT, to rise between 1 and 2 percent in
the very short term, with Thursday's close at 3,400 points as a
The pan-European FTSEurofirst 300 index, which fell
2.7 percent last week, was up 0.8 percent, led by cyclical
sectors including basic resources and banks.