LONDON Dec 4 European shares edged lower on
Tuesday, led by the basic resources sector, with traders citing
persistent concern about the lack of progress in the United
States over talks to delay growth-curbing austerity measures.
The pan-European FTSEurofirst 300 index was down
0.1 percent to 1,120.45 points, although the euro zone's
blue-chip Euro STOXX 50 index rose 0.1 percent to
The White House on Monday dismissed a budget deal proposal
from Republicans that included tax reforms and spending cuts,
saying it did not meet President Barack Obama's pledge to raise
taxes on the wealthiest Americans.
Berkeley Futures associate director Richard Griffiths said
worries over the U.S. budget situation was causing many traders
to err on the side of caution by selling shares to cash in on
the back of recent rallies.
"There's a lot of doubt about it at the moment, hence stock
markets are drifting lower. Sentiment has just turned a bit
negative recently," said Griffiths.
Griffiths said some clients were looking to sell European
equity markets at the top of their recent trading ranges, at
around the 2,625 point level for the Euro STOXX 50 index and
around 7,500 points for Germany's DAX index.