LONDON Dec 20 European shares stuttered on
Thursday as indexes approached overbought levels and budget
talks in the United States stalled, with Carnival a big faller
on 2013 earnings concerns.
The FTSEurofirst 300 provisionally closed up 1.01
point at 1,143.14, trading in a tight 4 point range all session,
with its 14-day relative strength index (RSI) - a widely-used
technical momentum indicator - at 67.5, where 70 and above
considered as 'overbought'.
Politicians in the United States remained locked in talks to
find a deal to avoid a "fiscal cliff" of government spending
cuts and tax rises due to take effect in early 2013 that could
hurt the world's largest economy.
"Our expectation is that something will get sorted but we
also think that it will not be enough," David Moss, director of
European equities at F&C Asset Management, said.
"It is clear the economic issues are not going to go away
any time soon. Growth is going to be slow for a long period of
time ... so I would be surprised if companies were anything
other than cautious for 2013," he said.
Investors' nervousness over the earnings outlook for
companies was reflected in a 5 percent drop in Carnival
in heavy trade after the cruise line operator said advance
bookings for 2013 were behind the previous year.