PARIS May 8 European shares rose on Wednesday,
extending their three-week rally to fresh multi-year highs and
with Deutsche Telekom surging after forecast-beating
The FTSEurofirst 300 index of top European shares
provisionally finished 0.7 percent higher at 1,229.82 points,
its highest closing level since mid-2008, while the euro zone's
blue chip Euro STOXX 50 index added 0.6 percent at
2,784.66, a near two-year closing high.
The two indexes have risen about 7 and 9 percent
respectively over the past three weeks on the back of strong
support from central banks, and technical momentum indicators
such as the relative strength index (RSI) show that stocks are
now 'overbought' and ripe for a pull-back.
"The market is on life support from the central banks. The
level of complacency in the market is very high at the moment
and we could get a correction anytime," FXCM analyst Nicolas
"It's time to take profits on a number of stocks that have
performed well lately, and to hedge the portfolios."
Deutsche Telekom was the best performing blue chip on
Wednesday, up 5.2 percent to a seven-month high after the German
telecom operator posted slightly better-than-expected earnings
and reaffirmed its profit outlook for the year.