* FTSEurofirst 300 flat, consolidates 22-month high
* Euro STOXX 50 up 0.1 pct, charts show trend still up
* Chinese inflation concerns hit miners
* Cap Gemini leads tech rally
* Commerzbank leads fallers on cap hike talk
By Francesco Canepa
LONDON, Jan 11 European shares were flat on
Friday, consolidating 22-month highs, as concerns about
faltering monetary stimulus from China hit basic resources
stocks and offset gains in tech shares.
But charts and asset flows data showed interest for shares
was still on the rise as accomodative central bank policies
across the world drove down bond yields and pushed investors
Resources stocks fell 1.4 percent at 1152 GMT as a
pick-up in inflation in China, the world's largest consumer of
metals, narrowed the scope for the central bank to boost the
economy by easing policy.
They weighed on the FTSEurofirst 300 index of top
European shares, which was flat at 1,164.72 points at 1209 GMT,
still within a stone's throw of the 22-month high of 1,170.29
points hit in the previous session.
"We've seen some dribble, dribbe selling on the miners on
the back of the Chinese data, with no significant buying as the
(market) is still at record level," Matt Basi, a senior sales
trader at CMC market said.
Basi said any positive news from the U.S. earnings season,
which was off to a positive start this week, would likely
reignite the rally as investor sentiment remained positive.
Keeping the index afloat were tech shares, led by
French IT services group Cap Gemini, which rose 4.4
percent after its Indian peer Infosys raised its
Finnish handset maker Nokia extended gains from
the previous session, when it unveiled strong sales of its Lumia
It helped the euro zone blue- chip Euro STOXX 50
index rise 0.1 percent to 2,711.25 points after a lower start.
Intra-day charts on the Euro STOXX 50 showed buyers coming
back into the index at around 2,703, with an ascending line
connecting intra-day lows from Jan. 8 supporting the index.
"Prices are supported by an ascending trend line born from
2,685," Philippe Delabarre, a technical analyst at Trading
Central in Paris. "As long as 2,685 is support, look for further
He set a target at 2,735, the extension of the height
between the support at around 2,690 and the top on Jan. 7 at
"On the contrary, a push below 2,685 would trigger
additional decrease to 2,660 (the upper end of a bullish gap on
The Euro STOXX 50 has risen 26 percent since late July, as
bold central bank action to revive the global economy and shore
up debt markets attracted investors into equities and depressed
sovereign bond yields.
Over the four business days to Jan. 8, equity mutual funds
took in $6.8 billion, with equity flows exceeding bond flows,
EPFR data showed, as central banks' easy monetary policies
depressed bond yields and pushed investors towards equities.
Investors in the United States were also warming to European
shares after significantly reducing their exposure at the start
of the financial crisis in 2008.
U.S. funds invested in European equities recorded net
inflows for the 14th straight week in the seven days to Jan. 9,
Lipper data showed.
Cyclical euro zone stocks - more sensitive to economic
growth and financial stability - benefited the most from the
growing appetite for shares.
The Russell Eurozone Dynamic Index, made up of companies
whose earnings and share prices are more sensitive to economic
and credit cycles as well as market volatility, rose 8.3 percent
in the fourth quarter and 3.4 percent in the week to Jan. 7.
Top holdings in the Dynamic Index include German industrial
conglomerate Siemens and stocks heavily correlated
with sovereign debt, such as Spanish bank Santander.
In a sign the troubles at euro zone banks were not over, as
new financial stability measures required them to hold higher
capital reserves, Commerzbank was hit by sellers on
talk of the need for a possible rights issue.
Commerzbank was down 3.3 percent in volume already one and a
half times its full-daily average, compared to just 42 percent
traded on the FTSEurofirst 300.