European shares flat before inflation data, Teliasonera falls

LONDON Fri Nov 29, 2013 3:12am EST

LONDON Nov 29 (Reuters) - European shares opened flat on Friday as investors waited for confirmation that euro zone inflation is holding up before committing more money to a three-month rally in local indexes.

At 0808 GMT, the pan-European FTSEurofirst 300 was flat at 1,304.56 points after setting its highest closing level in five years the previous day.

The index, up nearly 1 percent since the start of November, was on course to record its third consecutive monthly gain, although the pace of the rally had slowed significantly from that seen in September and October.

After higher-than-expected German consumer prices data on Thursday, investors were awaiting euro zone flash inflation estimates for November, due out at 1000 GMT, which were expected to show a paltry 0.8 percent rise.

A higher reading would paint a healthier picture of the region's economy and reduce the threat of deflation, which usually creates a negative environment for equity markets.

Nordic telecom operator Teliasonera, down 2 percent, was among top fallers after saying its chief financial officer, Per-Arne Blomquist, will leave immediately.

Trading was expected to be light as the U.S. stock market was due to close early at 1800 GMT. Volume on the pan-European FTSEurofirst 300 so far this week has been the lowest since the first week of January, when the index only traded for four days.