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European markets open lower on earnings

Tuesday, October 23 08:23:10

European shares edged lower today after a mixed bag of corporate updates kept investors cautious. At 0712 GMT, the FTSEurofirst 300 index of top European shares was down 0.1 percent at 1,106.73 points after the index had initially opened higher. Leading gainers in early deals were Michelin and Swedbank, up 3.8 percent and 3.6 percent, respectively after both posted positive updates. Among those lagging expectations was Alfa Laval, down 6 percent.

After several days of falls, Graham Bishop, senior equity strategist at Exane BNP Paribas, said now was a good time to buy back into the market. "Markets are now less overbought and are getting some valuation and earnings support. You should be prepared to take more risk... We are overweight banks, mining, industrials, chemicals and construction."

"There is a chance that earnings disappointments will be quite minor on the basis that growth might have weakened in the third quarter, but leading indicators picked up in September, and as expectations have been lowered consistently. We will be bullish in the near term." ( C) Reuters