* FTSEurofirst 300 down 0.5 pct at 1,152.12
* Bid speculation drives up Commerzbank shares
* Vodafone lifted by DB upgrade
By David Brett
LONDON, June 28 European shares hit the buffers
on Friday as technical resistance around the 1,156 level helped
stall momentum. Trade was subdued, as investors avoided making
large bets at the end of a volatile quarter.
Healthcare, technology and banking stocks
led the FTSEurofirst 300 down 5.30 points, or
0.5 percent to 1,152.12 by 1027 GMT after hitting technical
resistance at around 1,156 points - its 200-day moving average.
European shares hit seven-month lows on Monday and are set
for their first monthly and quarterly losses in a year, hurt by
worries over the global economy as central banks ease stimulus.
"It is unlikely that equities will repeat the performance of
the last 12 months (when European equities rose around 30) with
economic growth subdued and loan growth lagging," said Mark
Barnett, fund manager at Invesco Perpetual.
Flows into European equities from U.S.-based funds stalled
in the week ended June 26, after eight weeks of brisk net
inflows, data from Thomson Reuters Lipper shows.
"The correction has probably been about right for now and
equities are now looking less overvalued and on average look
like the right place to be," Invesco's Barnett said.
Deutsche Bank fell 1.8 percent with traders
citing vague bid speculation linking it with a move for
Commerzbank rose 2.5 percent having fallen sharply recently.
Vodafone rose 1 percent, helped by Deutsche Bank's
upgrade to "buy" and reports that Liberty Media is taking
soundings on an acquisition of larger rival Time Warner Cable
by cable operator Charter Communications.
Analysts said, if true, that might mean Vodafone is not
forced to raise its bid more for Kabel Deutschland.
The FTSEurofirst 300 was set for its first weekly gain in
six weeks and best weekly performance since mid-April, aided by
Federal Reserve policymakers' efforts to calm market fears that
the U.S. central bank will begin to tighten monetary policy.
The closely watched Chicago purchasing managers index survey
of business sentiment in the United States, is due at 1345 GMT.