European shares slip back in face of chart pressure

LONDON - European shares retreated on Wednesday in a technical sell-off, with analysts saying that expectations of more stimulus measures by central banks were largely priced in and investors were waiting for fresh catalysts to push the market to new highs.

By (Reuters)

Published: Wed 22 Aug 2012, 2:05 PM

Last updated: Tue 7 Apr 2015, 12:53 PM

At 0707 GMT, the FTSEurofirst 300 index was down 0.7 percent at 1,101.42 points after rising 0.4 percent in the previous session in volume at just two-thirds of the 90-day daily average.

The euro zone’s blue chip Euro STOXX 50, meanwhile, fell 0.9 percent to 2,467.80 points on Wednesday, after hitting its highest since April in the previous session.

“We are going to see some profit taking as volumes have come off in the past couple of days. Yesterday’s higher close was on a lower volume, suggesting that the market is not that keen to buy at higher levels,” Lynnden Branigan, technical analyst at Barclays Capital, said.

“If we start moving through Monday’s low of 2,451, then probably we will see a pull back towards a prior range low at 2,404. I expect some profit taking over the next two to three days before the market resumes its bull move.”

Miners, down 1.4 percent, were the top decliners. Top global miner BHP Billiton fell 1.2 percent after posting a 35 percent fall in second-half profit, battered by weaker commodity prices and industrial action.

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