* Euro STOXX 50 flat at 2,824.88 pts
* Index to head to around 3,000 in next month- Day-By-Day
* Italian stocks fall on government crisis threat
* Volume thin as London market shut for holiday
By Francesco Canepa
LONDON, Aug 26 Euro zone shares were little
changed on Monday, pegged back by a fall in Italian stocks, but
charts indicated appetite for shares in the region remained
solid and further gains were likely.
The euro zone blue chip Euro STOXX 50 index was
down 1.17 points at 2,824.88 points, flat in percentage terms at
Italian shares fell nearly 1 percent after members of Silvio
Berlusconi's centre-right party openly warned they would bring
down the government if the former premier is expelled from
The Euro STOXX 50 index, however, has been marking higher
daily lows and highs in the past three sessions and closed a
bearish gap between its Aug. 19 low and its Aug. 20 high,
signalling rising investor appetite for euro zone shares.
The index has risen 8.6 percent since the start of July, or
more than twice as much as the U.S. S&P 500, helped by
improving economic data in the euro zone.
"It may take a few of days to build a base but it looks like
we're going to have another top for 2013 in Europe," said
Valerie Gastaldy, head of Paris-based technical analysis firm,
Day-by-Day. She expected the Euro STOXX 50 to reach around 3,000
points in the next month.
"We don't have clear confirmation from the U.S. and Japan
but Europe is outperforming so much that a 3 percent upside in
the U.S, for example, may mean a 6 percent upside for Europe."
Gastaldy added that a switch out of U.S. and into "higher
beta" European shares, which tend to outperform rising markets
but underperform when markets fall, signalled investors were at
the most bullish in many years and a rally the began in mid-2012
was entering its late stage.
Italy's FTSE MIB was down 0.7 percent and Italian
banks UniCredit and Intesa Sanpaolo, which
are heavily exposed to the country's political situation through
their sovereign debt holdings, were the top fallers on the Euro
STOXX 50. They were both down around 1 percent.
Volume on the index was expected to remain thin as London's
stock exchange, Europe's largest, was shut for a public holiday.