PARIS, Jan 4 (Reuters) – European shares fell in early trade
on Friday as signs of rising concerns among U.S. Federal Reserve
members about the central bank’s quantitative easing programme
prompted investors to book a portion of recent strong gains.
Investors were also cautious ahead of U.S. non-farm payrolls
data for December, due later in the session.
At 0802 GMT, the FTSEurofirst 300 index of top
European shares was down 0.1 percent at 1,161.65 points,
retreating from near-two-year highs hit in the previous session.
“The market is getting quite ‘overbought’, both U.S. and
European stocks, and there’s a risk of a sell-off if the
payrolls figures are disappointing,” FXCM analyst Nicolas Cheron
said.
“A lot of fund managers are being sucked in, buying the
market because of fears of missing the rally. We’re set for a
correction wave sometime in the next two to three months. It
might not start in the short term, but it’s definitely coming.”
Minutes from the Fed’s December policy meeting released on
Thursday showed some voting members of the Federal Open Market
Committee were increasingly worried about the potential risks of
the Fed’s asset purchases on financial markets.
