European shares edge lower on earnings concerns
* FTSEurofirst 300 falls 0.1 percent in choppy trade
* Concerns about Q3 earnings season hurt sentiment
* Chart shows Euro STOXX 50 may rebound from 2,450
By Atul Prakash
LONDON, Oct 9 (Reuters) - European shares gave up early gains and turned negative on Tuesday as concerns over slowing global growth and its impact on corporate earnings weighed, although charts signaled a bounce back.
The FTSEurofirst 300 was down 0.1 percent at 1,099.57 points by 0849 GMT. It had earlier risen to as high as 1,104.04 on speculation China might introduce more stimulus measures after injecting cash into the money market, and as some investors took advantage of Monday's sell-off to move back into the market.
However, concerns about the global economic outlook, the euro zone situation and the third-quarter earnings season resurfaced and prompted investors to sell stocks in sectors such as industrials, chemicals and telecoms. Those sub-indexes were down by 0.3 to 0.5 percent.
"Global growth drivers are slowing down and that will not only have an impact on the third-quarter earnings but also hurt the earnings outlook for the next quarters," Giuseppe-Guido Amato, strategist at Lang & Schwarz in Frankfurt, said.
Analysts said that investors were trapped between positives and negatives, with recent central bank stimulus measures having the potential to improve liquidity and boost growth, while third-quarter earnings forecasts were being slashed.
The market was expected to continue trading in a broad range in the near term, but analysts said the overall bias remained on the upside as the technical trend was still positive and central bank stimulus would support equities.
"We are in a reporting season which is noisy, but between here and the end of the year I see the market higher," Ian Richards, global head of equities strategy at Exane BNP Paribas, said.
"Higher beta cyclical names, financials in particular, had a pretty strong run. I am inclined to keep the money on those sectors as I do think that they are still the cheapest part of the market."
The euro zone's blue chip Euro STOXX 50 index fell 0.4 percent to 2,486.36 points, with charts pointing to some further declines in the coming days before a rebound.
"The greater trend is still firmly bullish. We are not seeing any major topping signals. In the near term, we are probably going to see some buying interest at around 2,450," Lynnden Branigan, technical analyst at Barclays Capital, said.
Any move below 2,450, which is this month's low and near its 50-day moving average, could trigger a deeper correction, he said, adding the index was likely to face strong selling on the upside at around 2,570, its recent highs.
Among individual movers, Capita shed 3 percent, Traders said that the outsourcing firm's investor day on Monday failed to excite, prompting Seymour Pierce to downgrade its rating for the stock to "hold" from "buy".
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