PARIS Feb 25 European shares dipped early on
Tuesday, pausing after a three-week rally, although the overall
mood remained bullish with further positive corporate results
and a number of U.S. and European equity indexes reaching key
BASF was up 0.3 percent after the world's largest
chemicals company by sales posted better-than-expected quarterly
At 0806 GMT, the FTSEurofirst 300 index of top
European shares was down 0.3 percent at 1,348.30 points, after
gaining about 7 percent in the past three weeks.
The recent stock rally has propelled a number of indexes to
key levels, with France's CAC 40 hitting a 5-1/2 year
high on Monday and the FTSE 100 closing just 1.2 percent
shy of its record high hit in December 1999, while on Wall
Street, the S&P 500 hit a record intraday high.
"All the lights are turning 'green' and indexes are crossing
resistance levels. A majority of traders are bullish," said
Guillaume Dumans, co-head of research firm 2Bremans.
On the short-term, however, technical charts show indexes
reaching 'overbought' levels, which was prompting some investors
to book some profits.
"The long-term trend is still bullish: shallow dips and
strong rebounds, which are boosted in part by short covering and
by further buying from investors who are not 'long' enough,"
Aurel BGC chartist Gerard Sagnier said.