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European shares baulk at technical resistance

Source : REUTERS
Last Updated: Tue, Dec 04, 2012 16:40 hrs

LONDON, Dec 4 (Reuters) - European equity indexes closed off multi-month highs on Tuesday after an early rally failed to breach technical resistance, amid ongoing concerns about the fate of the U.S. economy in 2013.

The pan-European FTSEurofirst 300 provisionally closed down 0.1 percent at 1,120.25 points. It failed to hold on to a 17-month intra-day high of 1,125.79 after Wall Street opened lower on concerns that U.S politicians may struggle to reach a compromise on the budget, potentially plunging the economy into recession.

The EuroSTOXX 50 index of euro zone blue chips finished 0.2 percent higher at 2,587.49 points, just shy of the March and September peaks.

"At the moment it is normal consolidation," said Petra Kerssenbrock, technical analyst at Commerzbank.

"We had a very strong move, two weeks which led us up to the resistance in the area 2,600 to 2,611 and that is the resistance that I am really looking at ... We could make a first attempt this week, but I doubt that it would be successful."




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