European shares cool after five days of gains

Source : REUTERS
Last Updated: Fri, Apr 26, 2013 07:20 hrs

LONDON, April 26 (Reuters) - European shares opened lower early on Friday, cooling after five straight sessions of gains, with some disappointing earnings weighing on indexes.

The French fashion firm and luxury goods group PPR fell 5.3 percent after it missed first-quarter sales forecasts, hit by sluggish trading in Europe and slower growth in China.

By 0702 GMT, the FTSEuofirst 300 was down 3.21 points, or 0.3 percent, at 1,197.43, having gained 4.6 percent since last Thursday.

Gains have been driven primarily by expectations that central banks, particularly in Europe when the ECB meets next week, will provide some form of extra stimulus to boost the economy after recent weak data.

But some strategists urged caution with European equities, on course for their best weekly performance in five months.

"Investors are implicitly placing further faith in the ECB to deliver monetary support at next week's meeting," Ian Williams, strategist at Peel Hunt, said.

"There remains scope for disappointment on that front with at least a 25 basis point repo rate cut priced into risk assets," he said.

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