PARIS, Feb 5 (Reuters): European stocks inched up in early trade on Wednesday, halting a two-week selloff, although concerns about global growth and emerging market currencies kept investors on edge.
At 1149 GMT, the FTSEurofirst 300 index of top European shares was up 0.2 per cent at 1,273.42 points, taking a breather following a 6 per cent slide in the past two weeks.
The selloff - the index's sharpest retreat in seven months - was spurred by jitters over the impact of reduced stimulus from the US Federal Reserve on emerging market assets as well as tepid US and Chinese manufacturing data.
Technical charts showed the FTSEurofirst reaching 'oversold' levels after the two-week slump, with its relative strength indexes (RSIs) approaching 30.
"Technically, the market is clearly 'oversold', and investors should be rushing in. But the problem is: the global economic recovery that everyone was betting on just a few weeks ago doesn't seem to be as smooth as expected," said Jeanne Asseraf-Bitton, head of global cross-asset Research at Lyxor Asset Management.
"This year will be a year of transition from a liquidity-driven market to one driven by fundamentals. But with question marks now on the outlook for growth, and with a bit less liquidity, the road could be bumpy."
Investors were reluctant to take new positions before the European Central Bank's monetary policy decision and news conference on Thursday, and Friday's monthly US job data.
According to a Reuters' poll of economists, nonfarm payrolls are expected to have increased by 185,000 last month, bouncing back from a three-year low in January, which could ease investors' worries about the pace of economic growth in the world's biggest economy.
Around Europe, UK's FTSE 100 index was up 0.2 per cent, Germany's DAX index down 0.04 per cent, and France's CAC 40 up 0.3 per cent. The euro zone's blue-chip Euro STOXX 50 index was up 0.2 per cent.
Swiss watch maker Swatch featured among the top gainers, up 4.2 per cent after posting a strong rise in 2013 profits and saying it expected healthy growth this year.
The overall earnings picture remained mixed, however, with Syngenta falling 4.2 per cent after the world's largest maker of crop chemicals reported a drop in profit for last year.
© 2024 - All Rights with The Financial Express
