EDINBURGH, June 11 European stocks opened steady
on Wednesday, consolidating after a three-week rally led several
indexes back to multi-year highs, leaving indexes at risk of a
pullback in the short term.
Supporting the market was the retail sector, which
gained 0.5 percent, the top sectoral riser, after results from
Swedish fashion retailer Hennes & Mauritz and Spanish
rival Inditex beat expectations.
The pan-European FTSEurofirst 300 was flat at
1,398.16, having gained 0.3 percent on Tuesday.
The gains in Europe saw the FTSEurofirst 300 and the Euro
STOXX 50 hit their highest since January 2008 and
September 2008 respectively, while the German DAX hit
an all-time high.
However, all three indexes entered "overbought" territory.
The relative strength index (RSI), a widely used momentum
indicator, rose above 70 on all three indexes, which is
considered "overbought" and could signal a pause in the rally or
a pull-back in the short term.
Taking the most points off of the index was Vodafone
, down 3.1 percent after it traded without entitlement to
its latest dividend payout.
(Reporting by Alistair Smout; editing by Blaise Robinson)