RPT-Europe shares briefly slip on France rating cut talk

Tue Jan 8, 2013 10:04am EST

PARIS Jan 8 (Reuters) - European shares briefly slipped after fresh market talk of a potential credit rating downgrade of France, before rising again after a senior French official denied the rumour.

At 1418 GMT, the FTSEurofirst 300 index of top European shares was up 0.12 percent at 1,162.94 points, after turning almost flat when the rumour surfaced.

German Bund futures briefly extended gains to hit a session high of 143.48, up 42 ticks on the day, but there was only a limited reaction in French bonds, where 10-year yields were barely changed on the day at 2.11 percent.

A senior French official said market rumours that France's sovereign debt rating would be imminently downgraded were "erroneous".

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