LONDON Feb 12 European shares were flat on
Tuesday, with downbeat outlooks from firms such as Dutch
navigation devices and digital map company TomTom
hitting investor sentiment.
TomTom saw significant declines, off nearly 8 percent, after
saying it expects a sharp drop in earnings in 2013, knocked in
part by the weak state of the European car market.
The FTSEurofirst 300 was flat at 1,154.32 by 0813
GMT, after a 0.7 percent drop on Monday, having slipped around 2
percent from a two-year closing high reached on Jan. 29.
Fund managers indicated that the recent equity retreat
looked more like a pause than the start of a serious correction.
"Markets have run out of steam with the short base exhausted
which leaves little room for a short squeeze rally. Having said
that my feeling is that the dip will be bought as people need a
place to put their money," said Lex van Dam, hedge fund manager
at Hampstead Capital, which manages around $500 million assets.