LONDON, July 2 European equities drifted lower
in thin volumes on Tuesday, led by Fresenius Medical Care
, and failure to hold above an important technical
level opened the door to further index weakness in the near
Slightly stronger than expected U.S. factory orders added to
the jittery mood, with investors welcoming signs of improvement
in the world's biggest economy but concerned that this could
lead to a scaling back of the central bank stimulus that has
driven the past year's rally in global equities.
The pan-European FTSEurofirst 300 closed down 0.5 percent at
1,157.94 points. The Euro STOXX 50 fell 0.8 percent to
2,602.51 points after failing to conclusively break above the
200-day moving average in the previous session.
"Markets are nervous, and I see the deterioration in some of
the single names, we don't have any stocks supporting the
up-movement and that makes the risk reward point a little
lower," said Petra Kerssenbrock, technical analyst at
Commerzbank Corporates and Markets.
"The short-term support is in the area around 2,588 points
and we could fall below this level again."
Fresenius Medical Care led the fallers on the FTSEurofirst
300, down 8.8 percent in volume nearly six times its 90-day
daily average after a proposal in the United States to cut
government reimbursements to kidney dialysis centres there.
(Reporting By Toni Vorobyova; editing by Simon Jessop; editing
by Simon Jessop)