European shares retreat as cyclicals hit
LONDON, June 8
LONDON, June 8 (Reuters) - European shares retreated on Friday from a one-week high, led by cyclical stocks including banks and mining stocks and tracking moves overnight in Asia and the United States, as hopes for a fresh burst of U.S. stimulus faded.
At 0711 GMT, the FTSEurofirst 300 index of top European shares was down 0.7 percent at 977.943 points after gains in the previous session, helped by a rate cut by China.
"China was a positive factor, but (U.S. Fed Chairman Ben) Bernanke disappointed investors who were looking for some hints about a third round of quantitative easing. Disappointment can also be deducted from a correction in gold prices," Koen De Leus, strategist at KBC Securities, in Brussels said.
While comments from Bernanke giving few hints of further imminent monetary stimulus came out in late European trading hours on Thursday, and caused markets to close off their highs, the U.S. closed flat and many markets in Asia fell overnight, dampening sentiment in Europe in early deals on Friday.
"We think the Fed will do more balancing work. Given where we are in terms of U.S. economic growth and given the fiscal cliff coming at the start of 2013, the case for added stimulus over the course of the next few months is quite strong," Ian Richards, head of equity strategy at Exane BNP Paribas, said.
Cyclical stocks were the biggest losers, with miners down 2.1 percent and banks down 1.6 percent.
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