LONDON, June 11 European shares edged lower on
Tuesday, pressured by ongoing concerns that the era of plentiful
stimulus is coming to an end after the Bank of Japan decided
against unveiling any fresh measures overnight.
The BoJ's unchanged policy disappointed some investors who
had been expecting measures, such as extending the maximum
duration of cheap fixed-rates funds.
The news followed on from the European Central Bank last
week saying it saw no need for further stimulus measures at the
moment, and open discussion from Federal Reserve officials over
when would be the best time to start trimming asset purchases
under their quantitative easing (QE) programme.
The pan-European FTSEurofirst 300 index was down 0.6 percent
at 1,186.76 points at 0702 GMT.
"Given the lack of action from Japan overnight, that just
serves to highlight how the markets are highly dependent on
central banks to provide any additional impetus to the upside,"
said Ioan Smith, strategist at Knight Capital.
"Whether it is a complete retraction of all central bank
stimulus or just a scaling back ... everybody is trying to
front-run it and they are aware that there is only a small
window to get out of these trades. It depends on what happens
during the summer, but it wouldn't be unhealthy to see a
correction of between 5 and 10 percent now."