LONDON Jan 11 European equities stalled on
Friday, with weak economic data from the United States and
concerns about the scope for more stimulus in China giving
investors the excuse to lock in profits on a new year rally to
The U.S. trade deficit unexpectedly grew in November,
suggesting that fourth quarter gross domestic product (GDP)
growth in the world's biggest economy would likely be lower than
The FTSEurofirst 300 index provisionally closed 0.2 percent
lower at 1,162.70 points, retreating from Thursday's
two-year peak of 1,170.29.
"We got some fantastic returns in the early days of this
year. If we look at valuation and momentum indicator it seems
like this rally is reaching the ceiling. Looking at the earnings
season, we think there is more downside risk than upside risk on
earnings," Peter Garnry, strategist at Saxo Bank, said.
"If you take a tactical position around this, you would
either underweight European equities or sell out. If you are
really aggressive you could go short, and the DAX could
be a good way to do that."