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Europe Shares Seen Rising on Bargain-Hunting

European shares were seen rising on Tuesday, bouncing back after reaching a three-month low in the previous session as investors start looking for bargains.

Financial bookmakers, or spread betters, in London expected Britain's FTSE 100 index to open between 15 and 34 points higher, the German DAX 17 to 38 points higher and the French CAC 40 14 to 31 points higher.

The FTSEurofirst 300 index of top European shares dropped for a third straight session on Monday, to end down 2.1 percent at 1,462.76 points -- its lowest close since Aug. 16, as credit woes hurt financial shares such as Swiss bank UBS and as miners retreated on prospects of weaker demand due to slower economic growth.

"Surely investors are forming the opinion that the subprime issue, and its slow-bleed into the wider economy, will be a long, drawn out battle," Oliver St evens, head of dealing at IG Markets wrote in a note.

"This, however, competes with the temptation of stocks that are as cheap as they were just after the Fed stepped in to calm the credit markets, back in mid-August," he added.