LONDON Oct 4 European shares closed slightly
lower on Thursday as a gloomy economic outlook continued to cap
investor sentiment, with German chemicals giant BASF
the latest to be hit.
Shares in the world's largest chemicals maker fell 2 percent
as the group announced it would have to cut costs and sell a
business due to a decline in demand from southern Europe and
The FTSEurofirst 300 index provisionally closed 0.1
percent lower at 1,099.57 points, keeping within the 0.3 percent
trading range that has trapped the index for most of this week,
as coordinated stimulus action from global central banks
underpinned underlying appetite for equities.
"With equities looking relatively better than bonds and cash
in real terms, and in the context of large central bank
activism, an underweight in equity is difficult to justify,"
Stephanie Kretz, a member of the investment strategy team for
private banking at Lombard Odier, said.
"However, an overweight is not appropriate either due to the
large underlying structural issues and the diminishing marginal
effects of quantitative easing over time."