Business

European shares flat, capped by weak corporate outlooks

A trader monitors the screen on a trading floor in London January 22, 2010. — Reuters picA trader monitors the screen on a trading floor in London January 22, 2010. — Reuters pic

TomTom saw significant declines, off nearly 8 per cent, after saying it expects a sharp drop in earnings in 2013, knocked in part by the weak state of the European car market.

The FTSEurofirst 300 was flat at 1,154.32 by 0813 GMT, after a 0.7 per cent drop on Monday, having slipped around 2 percent from a two-year closing high reached on Jan. 29.

Fund managers indicated that the recent equity retreat looked more like a pause than the start of a serious correction.

"Markets have run out of steam with the short base exhausted which leaves little room for a short squeeze rally. Having said that my feeling is that the dip will be bought as people need a place to put their money," said Lex van Dam, hedge fund manager at Hampstead Capital, which manages around US$500 million assets. — Reuters

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