LONDON Jan 16 Europe's top shares opened lower
on Wednesday with indexes consolidating around mutli-month highs
and near technically "overbought" territory as sovereign risks
remain a cloud on the horizon.
By 0800 GMT, the FTSEurofirst 300 was down 1.62
points, or 0.1 percent, at 1,158.60, lingering near 22-month
highs but with the index flat-lining in the short-term term
since hitting "overbought" territory just over a week ago.
The euro zone blue chip index has stalled too,
around its own 18-month highs, awaiting catalysts to drive
further a rally which has seen shares gain more than 30 percent
With fiscal concerns continuing in the United States and
with much of Europe still in recession, Mark Pignatelli, Smith &
Williamson European Growth Trust fund manager, said an end to
both of those issues in the coming months would be needed to
drive the next leg of the equity rally.
"PMIs are still in recessionary territory but they are
improving ... Over the next few months investors will look
through the bottom of the trough and recognise that equities are
perfectly solvent assets in a environment which is not growing
fast but is ok," he said.