LONDON Oct 23 European shares broke their
nine-day winning streak on Wednesday as blue chips including
chip maker STMicroelectronics and brewer Heineken
unveiled weak updates and traders took profit on
Heineken cut its full-year profit guidance due to a drop in
sales in some regions while quarterly revenues at STM fell short
of analysts' expectations, sending the stocks down 3.1 percent
and 5.7 percent, respectively.
Finnish utility Fortum, fell 5.8 percent, after
it reported a weaker-than-expected underlying third-quarter
profit, which it blamed on low hydro power production.
The euro zone Euro STOXX 50 index fell 0.5
percent to 3,030.24 points, with the pan-European FTSEurofirst
300 also down 0.5 percent at 1,281.44, retreating from
a five year-high.
The euro zone Euro STOXX 50 index was at its most
"overbought" since 2006 on Tuesday, when its 14-day Relative
Strength Index, a measure of buying momentum, hit 73 points.
A reading above 70 indicates "overbought" conditions. The
Euro STOXX 50 has fallen each time its RSI came close to 73 over
the past seven years. Germany's Dax was also in "overbought"
territory by the same indicator.