LONDON, Nov 5 (Reuters) - European stocks climbed to fresh
five-year highs on Tuesday on expectations that both euro zone
and U.S. monetary policy will remain accommodative for some
time, but mixed corporate earnings kept gains in check.
U.S. officials signalled overnight that the Federal Reserve
was in no rush to cut its programme of bond purchases, backing
market expectations that the equity-friendly stimulus will not
be trimmed until early next year.
The European Central Bank is seen focusing on the need to
stimulate economic growth at its meeting this Thursday, with a
small minority in a Reuters poll expecting an interest rate cut.
The pan-European FTSEurofirst 300 rose as high as 1,297.29
points in early deals, setting a five-year high for the third
time in a week.
Gains, though, were capped by post-earnings weakness in the
likes of insurer RSA and auto maker BMW.
'We have had a little bit of an overbought situation but the
uptrend is still intact,' said Petra Kerssenbrock, technical
analyst at Commerzbank.
'The bias is to the upside ... it's a general picture. The
southern European indexes, IBEX and FTSE MIB,
had even strong pushes to the upside and are now also digesting
them, but it's all trend-confirming to the upside.'
(Reporting By Toni Vorobyova, editing by Nigel Stephenson)
Keywords: MARKETS EUROPE STOCKS/
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