European shares hit two-month low as macro gloom eclipses Fed relief

jueves 9 de octubre de 2014 11:06 GYT
 

* FTSEurofirst 300 index falls 0.4 pct, sets two-month low

* Gives away early gains as macro picture seen gloomy

* Suedzucker, Gerresheimer tumble after outlook update

By Francesco Canepa

LONDON, Oct 9 (Reuters) - European shares surrendered early gains in choppy afternoon trade on Thursday as relief at the prospect of continued monetary support from the Federal Reserve gave way to a bleak economic outlook on this side of the Atlantic.

The market had been boosted by the minutes of the last Fed meeting, which suggested the central bank would not start raising interest rates until the U.S. economy is strong enough to accept the move.

Precious metals miners Fresnillo and Randgold Resources rose more than 6 percent each as gold prices climbed to their highest in two weeks on the back of the dovish minutes.

But a string of weak European economic data recently and dissatisfaction at stimulus measures introduced so far by the European Central Bank led investors to cash in on early gains.

"Everyone was a bit more bullish after the minutes but Europe's picture hasn't changed," Mike Reuter, a broker at Tradition, said. "So overall people are taking advantage (of the bounce) and taking a bit of profit."   Continuación...