European shares touch 2-wk low, further weakness eyed

LONDON Tue Jan 15, 2013 8:22am GMT

LONDON Jan 15 (Reuters) - European shares dropped for a fourth straight session and hit a two-week low on Tuesday, led by the banking sector and pressured by technical weakness in a leading index that is set to continue in the near-term.

At 0805 GMT, the FTSEurofirst 300 index of top European shares was down 0.2 percent at 1,157.75 points, just off the 2-week low of 1,157.13 hit earlier. The euro zone's blue-chip Euro STOXX 50 index, meanwhile, fell 0.5 percent to 2,700.53 points.

"The (E-STOXX 50) index looks somewhat sluggish in the very short term," Roelof-Jan van den Akker, senior technical analyst at ING Commercial Banking, said.

"For the very short term, there could be some pressure on the index to close the gap created in early this month. This would be a normal pull back in an uptrend."

The European banking index down 0.7 percent, led fallers.

Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.