European shares grind to fresh multi-month peaks

LONDON Mon Jan 28, 2013 4:36pm GMT

LONDON Jan 28 (Reuters) - European equities touched fresh multi-month peaks on Monday, with technical charts pointing to a continued slow grind higher backed by tentative signs of improvement in the global economy and corporate earnings.

The Euro STOXX 50 provisionally closed 0.1 percent higher at 2,746.22 points, setting fresh 18-month peaks in the wake of stronger-than-expected U.S. durable goods orders showing firms in the world's biggest economy had stepped up spending.

The daily moves on the euro zone blue-chip index have averaged less than 10 points since Jan. 3, less than half of the usual size for 2012.

"It's not the top [of the market] but it's not going to accelerate, it's a slow market and you just have to be patient," said Valerie Gastaldy, analyst at Day By Day.

"As long as we are above (technical support at) 2,723 we can aim for 2,790. We are not that overbought because we've been very, very slow."

The FTSEurofirst 300 was down 0.1 percent at 1,173.77 points after touching a two-year intra-day peak of 1,176.19 plans.