PARIS Jan 16 European shares ended mostly flat
on Wednesday, bouncing off intraday lows as many investors used
the early dip to boost their exposure to equities, with mining
shares the main drag.
The FTSEurofirst 300 index of top European shares
unofficially closed 0.01 percent higher at 1,160.36 points,
after losing as much as 0.5 percent earlier in the session.
The benchmark index - which is already up 2.3 percent so far
this year and has hit a near-two-month high earlier this month -
has surged 8.8 percent since mid-November as fading fears of a
break-up of the euro zone prompted investors to scoop up the
"Europe's catch-up rally is set to continue," said Roland
Kaloyan, strategist, global asset allocation, at Societe
"There is no reason to switch out now. Markets are flooded
with liquidity, low volatility levels are supporting inflows,
and valuations are still attractive."
Mining shares were among the day's losers, falling along
with metal prices as investors remain cautious over China's
economic outlook. Rio Tinto fell 0.9 percent and Vedanta
Resources dropped 1.4 percent.