LONDON Dec 28 European shares closed the last
full trading session of 2012 lower as wavering expectations of a
deal to prevent the U.S. stumbling over its "fiscal cliff" left
overbought indexes vulnerable to profit taking.
The FTSEurofirst 300 provisionally closed down 6.60
points, or 0.6 percent, at 1,131.00 on Friday, while the Euro
STOXX 50, whose 14-day relative strength index (RSI)
- a widely-used technical momentum indicator - is in
'overbought' territory, fell 1.2 percent.
With markets in Austria, Denmark, Finland, Germany, Italy,
Norway, Sweden, and Switzerland now closed for 2012, and a deal
in the U.S. to reach an agreement to avoid massive tax hikes and
spending cuts still looking some way off, Friday was the last
chance for many investors to book profits on bumper gains seen
over the last six-months.
"It is no surprise the politicians are leaving it late. But,
while there is uncertainty, the smart move is to reduce risk and
take downside protection," a London-based trader said.