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Euro shares steady, all eyes on Summit

Tuesday, June 26 16:41:21

European equities steadied near one-week lows today, weighed down by dampened expectations of fresh crisis fighting measures from politicians and ongoing global growth worries, but supported by cheap valuations which have begun to lure some in.

Expectations of a big new initiative from the June 28-29 summit of European Union leaders have been dashed by German Chancellor Angela Merkel, who remains strongly opposed to common euro zone bonds to help share the debt burden of some of the bloc's financially vulnerable members.

Europe will not have shared total liability for debt as long as she lives, Merkel said at a party meeting on Tuesday, according to sources.

"Expectations were too high they are now being watered down, probably now to the right level, people don't expect too much," said Francois Duhen, strategist at CM-CIC Securities in Paris, adding that markets could weaken further ahead of the summit.

The FTSEurofirst 300 provisionally closed flat at 986.62 points, finding technical support at the 20-day moving average after hitting its lowest intra-day level in over a week at 983.75.