Tuesday, September 18 08:33:34
European shares edged lower today, pulling back further from a 14-month high hit after central bank action to stimulate the global economy, led by mining shares on concerns over metals prices. By 0701 GMT, the FTSEurofirst 300 was down 4.36 points, or 0.4 percent, at 1,112.22, having hit its highest level in over a year on Friday. Heinz-Gerd Sonnenschein, strategist at Deutsche Postbank, said he expected equity markets to track sideways as investors await the next catalyst to fuel further gains.
"We have seen strong moves by the central banks and it is now up to the (European) politicians to take the next step towards a stronger union," he said. "In the meantime focus will switch back to fundamentals and companies will have to show what they can do, so the next earnings season could be stressful," Sonnenschein said. Mining stocks were the biggest fallers, having led the rally over recent days, weighed on by earnings concerns after Australia, the world's biggest exporter of iron ore, cut its revenue forecasts for the key steel making ingredient by a fifth today. ( C) Reuters