LONDON Jan 28 European shares edged lower early
on Monday as multi-month highs and recent bullish fund-flow data
prompts some investment banks to turn more cautious on equities
in the short-term.
By 0802 GMT, the FTSEurofirst 300 shed 0.94 points,
or 0.1 percent, to 1,173.87, leveling off near two-year highs.
"Our global indicator now stands at +1.39 standard
deviations, signaling the most bullish sentiment from equity
mutual fund investors since January 2009," strategists at Nomura
said in a note.
Equity funds outgained bond funds for the seventh straight
week last week but the pace of inflows slowed, EPFR Global data
"All of our proprietary regional mutual flow indicators,
with the exception of Japan, are also at very bullish levels and
along with elevated readings from another of our systematic
sentiment indicators, the composite sentiment indicator has
prompted our Global Quantitative Strategy Team to issue a
short-term tactical neutral position on the market," Nomura
JP Morgan echoed that sentiment warning investors had become
too bullish and that a consolidation could be on the cards,
while downgrading its weighting in cyclical versus defensives.