LONDON, Dec 11 (Reuters): European shares steadied on Wednesday after
falling in the previous session, with RBS a big loser on the departure
of its finance chief, as uncertainty over the outlook for US monetary
policy looked set to cap any broader gains.
Royal Bank of Scotland fell 1.7 per cent, the biggest faller on the FTSEurofirst 300, after the bank said Nathan Bostock had resigned to join Spanish bank Santander after just 10 weeks in the job.
Bostock's departure deals another blow to turnaround efforts at the British lender, which is 81 per cent owned by the government. Stephen Hester stepped down as RBS chief executive earlier this year.
"The fact that another member of the management team has decided to jump ship is unlikely to improve sentiment towards the stock," Richard Hunter, head of equities at Hargreaves Lansdown, said.
The FTSEurofirst was up 0.1 per cent at 1,263.98 by 0853 GMT, having dropped 0.7 per cent on Tuesday. The index is some 4 per cent below a five-year high of 1,316 hit in early November. The euro zone's blue-chip Euro STOXX 50 index , was up 0.2 per cent at 2,966.67 points.
Shares have been drifting lower on uncertainty over when the US Federal Reserve will start scaling back its monetary stimulus, with recent robust US data having re-ignited speculation it could start the process before year-end.
News that US budget negotiators had reached a provisional two-year deal to avoid another government shutdown offered some reassurance about the US economy but was also seen as providing more room for the Fed to dial back its stimulus scheme earlier.
News that US budget negotiators had reached a provisional two-year deal to avoid another government shutdown offered some reassurance about the US economy but was also seen as providing more room for the Fed to dial back its stimulus scheme earlier.
"Now we've got that (the budget deal) out of the way, then there's the risk that the tapering is going to come a little bit sooner. But in my mind not December," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Market.
Royal Bank of Scotland fell 1.7 per cent, the biggest faller on the FTSEurofirst 300, after the bank said Nathan Bostock had resigned to join Spanish bank Santander after just 10 weeks in the job.
Bostock's departure deals another blow to turnaround efforts at the British lender, which is 81 per cent owned by the government. Stephen Hester stepped down as RBS chief executive earlier this year.
"The fact that another member of the management team has decided to jump ship is unlikely to improve sentiment towards the stock," Richard Hunter, head of equities at Hargreaves Lansdown, said.
The FTSEurofirst was up 0.1 per cent at 1,263.98 by 0853 GMT, having dropped 0.7 per cent on Tuesday. The index is some 4 per cent below a five-year high of 1,316 hit in early November. The euro zone's blue-chip Euro STOXX 50 index , was up 0.2 per cent at 2,966.67 points.
Shares have been drifting lower on uncertainty over when the US Federal Reserve will start scaling back its monetary stimulus, with recent robust US data having re-ignited speculation it could start the process before year-end.
News that US budget negotiators had reached a provisional two-year deal to avoid another government shutdown offered some reassurance about the US economy but was also seen as providing more room for the Fed to dial back its stimulus scheme earlier.
News that US budget negotiators had reached a provisional two-year deal to avoid another government shutdown offered some reassurance about the US economy but was also seen as providing more room for the Fed to dial back its stimulus scheme earlier.
"Now we've got that (the budget deal) out of the way, then there's the risk that the tapering is going to come a little bit sooner. But in my mind not December," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Market.
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