↑ Scroll to top

REFILE-European stocks near highs ahead of Fed

Published: December 12, 2012 | 10:14 am
Text size: -A +A

European shares steadied in early trade on Wednesday, keeping alive their sharp three-week rally as investors bet the U.S. Federal Reserve will unveil a new round of bond buying in a bid to support the economy.

At 0804 GMT, the FTSEurofirst 300 index of top European shares was up 0.02 percent at 1,139.11 points, after hitting an 18-month high on Tuesday.

UK’s FTSE 100 index was up 0.05 percent, Germany’s DAX index up 0.2 percent, and France’s CAC 40 flat.

The Fed is expected to replace its so-called Operation Twist, a programme of Treasury purchases which is drawing to a close, with a new bond buying plan which will further expand the central bank’s balance sheet.

A number of traders, however, warned that stocks were poised for a retreat, after the FTSEurofirst 300 surged about 7 percent in three weeks.

“The market is getting ‘overbought’, which doesn’t happen very often. We’re ripe for at least a pause, and maybe a pull-back,” said Patrice Perois, trader at Kepler Capital Markets, in Paris.

“Volumes have been extremely low, which means that the rally remains fragile regardless of the newsflow.”

reuters

VN:F [1.9.10_1130]
Rating: 0 (from 0 votes)
Share on Facebook Share on Twitter
More posts in category: Local Business News
  • Euro zone debt crisis could see ‘watershed year’ in 2013, says Standard & Poor’s
  • Temporary Parliament Commission will Investigate GNCC Activities
  • Bank of Georgia’s Next Generation Banking Application is Already Available for Android™
  • Addition of Images to Cigarette Packaging