European shares slip back; data awaited

  • Reuters, London
  • |
  • Updated: Jul 05, 2011 13:04 IST

European shares fell early on Tuesday, giving back a little of some strong recent gains, and as investors awaited euro zone PMI data.

At 0709 GMT, the FTSEurofirst 300 index of top European shares was down 0.1% at 1,119.99 points, after rising 0.2% in the previous session to its highest close in one month.

CSM NV, the world's largest bakery products supplier, fell 10.1% after saying a higher than expected surge in raw material costs would lead to lower first-half earnings, even as it stepped up price hikes to compensate.

"Part of the reason for the rally last week was better-than-expected data out of the United States. The markets want to see whether that will be continued and whether the soft patch has come to an end," said Jeremy Batstone-Carr, strategist at Charles Stanley.

"With the US debt ceiling issue moving toward the centre of the stage, and continued uncertainty, there is still plenty of reason for most investors to be strategically cautious."

 

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