LONDON, Dec 7 (Reuters): European shares
edged down Friday after Germany's central bank slashed its growth
forecasts, and as investors booked profits on concerns U.S. jobs data
may disappoint.
The
Bundesbank cut its growth outlook for the euro zone's largest economy
on Friday, less than 24 hours after the European Central Bank slashed
its own forecasts for the bloc, darkening the prospects for European
corporate profits next year.
"We think earnings will be revised down, which is bound to create concerns," Emmanuel Cau, a strategist at JPMorgan said.
JPMorgan
expects no growth in European earnings per share next year, compared to
current consensus estimates predicting a 9.2 percent increase,
according to Starmine data.
Cau
warned that this would likely result in share price volatility in the
first half of the year, but he remained confident that European shares
would rebound in the second half as easier monetary conditions help
stabilise economic growth.
He expected the Euro STOXX 50 index, down 0.4 percent at 2,593.49 points at 1133 GMT on Friday, to end 2013 at 2,750 points.
The index faced a strong term resistance corresponding to its 2012 high of 2,611.
Philippe
Delabarre, a technical analyst at Trading Central in Paris, said a
close above that level would likely send the index rallying towards
2,700 next week.
"On
the contrary, if the index fails to break above this threshold
today...a consolidation towards 2,550 will be foreseen until next
Friday," he said.
The broader FTSEurofirst 300 index traded 0.2 percent lower at 1,129.31 points.
Bottom of the index was Deutsche Telekom, down 3.2 percent after the company cut its dividend for the next two years.
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