LONDON Jan 29 European shares edged higher to
trade near two-year highs on Tuesday, with improving
macroeconomic conditions and strong earnings improving
sentiment, although technical factors could limit gains in the
At 0811 GMT, the FTSEurofirst 300 index was 0.2 percent
higher at 1,174.78 points after hitting a 23-month high in the
previous session. The euro zone's blue-chip Euro STOXX 50
index was 0.1 percent higher at 2,745.62 points.
"The markets are currently overbought after one of the
longest winning streaks in years and we are due for a period of
consolidation. This will probably not be too violent as there is
a lot of money waiting at the sidelines," Philippe Gijsels, head
of research at BNP Paribas Fortis Global Markets, said.
"Overall conditions remain favourable for a continuation of
the rally. Central banks will continue to inject money and the
world economy seems to be turning up."
The STOXX Europe 600 Travel and Leisure sector was
the top sectoral gainer early on, led by a 3.2 percent gain for
William Hill, Britain's largest bookmaker, after it
posted strong full-year results.