LONDON Feb 19 European shares edged higher on
Tuesday, led by gains for French food group Danone
after it posted forecast-beating sales, although broader market
sentiment remained cautious.
The pan-European FTSEurofirst 300 index reversed
early falls to trade up 0.2 percent at 1,160.99 points by 0814
Danone led gainers across the region, up 4.8 percent after
the company beat sales forecasts and announced plans to cut
costs, although it forecast profits would be hit in 2013 by the
economic downturn in southern Europe.
That economic weakness has acted to cap investor sentiment
during the current earnings season and adds to persistent
concern around the political outlook ahead of forthcoming
elections in Italy.
Berkeley Futures associate director Richard Griffiths said
the Euro STOXX 50 and German DAX equity index could
fall by between 3-4 percent over the coming month.
"I think any in-roads to the upside will be hard to come by.
I think we're in for a period of consolidation, with the risk
more to the downside," he said.