LONDON, May 25 (Reuters) – Drugmakers and utilities were among the top gainers as Europe’s top share index closed higher on Friday, albeit in choppy trade and light volumes, as uncertain macro economic conditions dampened investors’ risk appetite.

The FTSEurofirst 300 was up 2.36 points, or 0.2 percent at 984.97, closing the week higher, having fallen over the last three weeks.

Volumes were just 80 percent of their already weakened 90-day average, reflecting investors’ downbeat mood, as the index remained near mid-December lows when asset prices were artificially inflated by central bank intervention.

European equities have been on a downward trend since mid-March when Spain said it was struggling to meet austerity targets and Greece subsequently failed to form a new government after voters rejected austerity measures, raising the prospect of the country leaving the euro zone.

“Market conditions are undeniably difficult at the moment, but this is to be expected given the uncertain economic backdrop that investors are grappling with,” said Oliver Wallin, investment director at Octopus Investments, which has some 2.5 billion pounds ($3.92 billion) under management.

Wallin said that until Octopus sees greater clarity and direction it remains neutrally positioned to its long term strategic asset allocation.

Defensive stocks such as utilities, food and beverages and pharmaceuticals helped European stocks higher.

LONDON, May 25 (Reuters) – Glass half-full investors who are able to stomach short-term volatility are being lured into European equities by cheap valuations, anticipating rewards if policymakers can ultimately contain the euro zone crisis.

With Greece’s potential exit from the 17-country currency bloc no longer taboo since voters hammered parties supporting the country’s international bailout in a May 6 election, shares have tumbled. [I D :nL5E8GM3L0]

European equities have fallen 13 percent over the past two months and the scale of daily market swings has nearly doubled – with indexes in the weaker countries on the euro zone periphery even worse hit.

Spain’s IBEX, heavily weighted towards financials, is at lowest in nine years as the country battles to reform its banking system and meet austerity targets, while the Athens benchmark index is at all-time lows.

While many strategists predict further falls in the short term, particularly in the run-up to a second Greek election on June 17, the steep sell-off has left stocks looking attractive on many valuation measures and opened up opportunities for some buy and hold investors with a longer-term time horizon.

“We are seeing a drag on equity markets and we have the view that there are certain levels which for a long term investors are an opportunity to buy,” said Oliver Wallin, investment director at Octopus Investments, which has some 2.5 billion pounds ($3.92 billion) under management.

“For us it’s more of a risk-back-on trade. We are buying into the UK equity market, a little bit of European equity market through ETFs [Exchange-Traded Funds], buying in at the sidelines into highly liquid instruments that we can unwind if things take a turn for the worse,” he said.

LONDON, May 23 (Reuters) – Banks and basic resource stocks led European shares sharply lower around midday on Wednesday, correcting a two-session rally in volatile trade, as investors turned cautious ahead of a meeting of European Union policy makers.

At 1035 GMT, The FTSEurofirst 300 index of top European shares was down 16.18 points, or 1.6 percent at 977.49, having gained 2.5 percent in the last two trading days, while the euro zone’s blue chip Euro STOXX 50 index shed 46.52 points, or 2.1 percent, to 2,146.33.

The bounce over the previous two-sessions coincided with the FTSEurofirst 300 entering “oversold” territory for the first time since August, according to its relative strength index.

“The rally over the last two-days was simply a bounce from oversold territory, purely technical driven rather than anything fundamental, and I’m not surprised it has fizzled out again, because the things we have been worrying about for the last six weeks are still big concerns,” Ian Williams, equity strategist at Peel Hunt, said.

The trend for Europe’s top shares remains on a downward trajectory as investors fret about the stability of the euro zone and the outlook for global growth.

Losses in Europe echoed a late reverse on Wall Street, which came after Dow Jones quoted former Prime Minister Lucas Papademos as saying Greece had no choice but to stick with a painful austerity programme or face a damaging exit from the euro zone.

That soured sentiment ahead of a meeting of European leaders where amongst other things it is expected the idea of regional bonds jointly underwritten by all euro zone member states will be discussed.

LONDON, May 23 (Reuters) – Europe’s top shares fell early on Wednesday, reversing a two-session rally and tracking losses overnight on Wall Street as caution prevailed ahead of an EU meeting, which is expected to discuss ways to shore up Europe’s economy.

At 0749 GMT, The FTSEurofirst 300 index of top European shares was down 8.59 points, or 0.9 percent at 985.08, having gained 2.5 percent in the last two trading days, while the euro zone’s blue chip Euro STOXX 50 index shed 26.85 points, or 1.2 percent, to 2,166.00.

Investors awaited a meeting of European leaders where amongst other things it is expected the idea of regional bonds jointly underwritten by all euro zone member states will be discussed. New French President Francois Hollande supports the proposal but German Chancellor Angela Merkel is opposed to it.

“Most are expecting no concrete solution out of the meeting, just a few ideas discussed on how to boost growth with no real commitment to carry them out; while Angela Merkel is almost certain to reject any proposal by Francois Hollande in relation to euro bonds,” Craig Erlam, market analyst at Alpari, said.

Basic resource stocks, the previous session’s top gainers, were the sharpest fallers on Wednesday as investors switched into risk-off mode, while banks, heavily exposed to the fortunes of the euro zone, also posted early losses.

Fears that Greece may have to leave the euro grew after Dow Jones quoted former Prime Minister Lucas Papademos as saying Greece had no choice but to stick with a painful austerity programme or face a damaging exit from the euro zone.

BANKS FOCUS

LONDON, May 22 (Reuters) – European stocks climbed on Tuesday, extending a rebound into a second day on hopes of action by policymakers to tackle Europe’s debt crisis and as Chinese plans to boost infrastructure investments benefited mining shares.

At 1043 GMT, the FTSEurofirst 300 index of top European shares was up 6.61 points, or 0.7 percent, at 981.65, while the euro zone’s blue chip Euro STOXX 50 index was up 0.7 percent.

But volumes were thin, higlighting a lack of conviction behind the rally, with the FTSEurofirst 300 having traded just 30 percent of its already weak 90-day average by around midday.

The STOXX 50 has fallen 17 percent since doubts were cast in mid-March over Spain’s ability to stick to its austerity programme.

Technical analysts said their preference would be for long positions so long as the STOXX 50 maintained a level above 2,105. But a break below that could open up a fall towards 2,050.

Cyclical shares such as heavyweight miners rose, lifted by a report saying China would fast-track approvals for infrastructure investments to reverse a slowdown in economic growth.

The Conference Board leading economic index for China, released overnight, rose month-on-month and is 11.7 percent higher than a year ago, a pace of growth that has accelerated each month.

LONDON May 21 (Reuters) – Britain’s top share index halted a week-long slide on Monday, as investors stumped up the courage to buy in on the dips of badly beaten equities, although the murky outlook for global growth kept gains to a minimum.

London’s blue chip index closed 36.86 points higher, or up 0.7 percent at 5,304.48, having fallen 5.5 percent last week on persistent concerns over the implications of a possible Greek exit from the euro and worries over debt-laden Spanish banks

The index has stabilised around the 5,250 level in the past two trading days and just above the 200-week moving average, a level last broken in Dec. 2, the day major central banks lifted global markets via coordinated liquidity injections, although an analyst said any upside this week is seen limited at 5,430.

Comments from Chinese policymakers that suggested they could well take measures to help boost growth and domestic consumption helped the rally, as did the U.S. Chicago Fed National activity index, which suggested the U.S. economy is on a slow recovery path at the start of Q2.

“There is some value out there … There is some growth (outside Europe) and people need to remember that the earnings of FTSE 100 companies are skewed outside the UK,” said Rupert Armitage, director at Shore Captial.

Riskier banks and miners, which have fallen more than 18 percent and 22 percent respectively over the last three months, inched higher.

Vedanta, up 5.2 percent, led the miners higher in tandem with copper prices, which recovered on a combination of bargain-hunting, short-covering and a weaker dollar, having rallied off four-month lows in the previous session.

LONDON (Reuters) – Banks and commodity stocks helped Britain’s leading share index to bounce on Monday, after sharp falls last week with sentiment tainted by lingering doubts over stability of the euro zone and G8 leaders doing little to calm investors’ long-term fears.

The G8 meeting over the weekend reaffirmed support for Greece and calling for a better balance between austerity and growth, but left doubts whether Germany would soften its stance towards pro-austerity policies.

London’s blue chip index .FTSE climbed as investors took a small punt on bruised sectors such as banks and miners .

The FTSE 100 was up 32.94 points, or 0.6 percent at 5,300.56 by 1035 GMT, having fallen 5.5 percent last week on persistent concerns over the implications of a possible Greek exit from the euro and worries over debt-laden Spanish banks weigh.

The benchmark index has fallen more than 11 percent from its closing 2012 highs in mid-March when euro zone debt worries resurfaced after Spain heightened fears it would not meet its austerity targets.

The FTSE 100 is now in “oversold” territory, according to its relative strength indicator, for the first time since the rally which began in August.

“Markets appear to be oversold and bullish sentiment has evaporated … after the recent market declines, it is clear that Europe’s problems have not been solved, the U.S. economy is still muddling through at best and China is slowing more quickly than the bullish crowd would like to admit,” said Stewart Richardson, chief investment officer at RMG Wealth Management.

LONDON (Reuters) – The top share index tumbled through support levels on Friday as the dire situation in the euro zone kept bears in control of the market, after Moody’s downgraded Spanish banks en masse overnight and Fitch cut its debt rating for Greece.

London’s blue chip index .FTSE was down 29.93 points, or 0.6 percent at 5,308.45, by 08:33 a.m. British time, having closed below 5,400 for the first time this year on Thursday, and set to record its third-straight week of losses, as turmoil in the euro zone dominated sentiment.

“I have been heavily short of the market for the past two weeks and cannot see any light at the end of the tunnel,” a London-based trader said.

“There’s still belief that central banks and policymakers will step in to support stricken euro zone countries as the consequences of a break-up are too ugly to bear thinking about, but the uncertainty is what is killing the market,” he said.

Banks , which have massive exposure to the euro zone crisis, fell again and are down nearly 30 percent over the last three months.

While Moody’s’ downgrade of 16 Spanish banks and Fitch’s cutting of Greece’s sovereign debt rating by another notch was expected, confidence was not helped by persistent rumours of runs on Greek and Spanish banks, vehemently denied by authorities.

“With sentiment towards risk assets already extremely fragile, the prospect of a run on the banks is hardly helpful,” said Ian Williams, equity analyst at Peel Hunt.

LONDON May 18 (Reuters) – Britain’s top share index tumbled through support levels on Friday as the dire situation in the euro zone kept bears in control of the market, after Moody’s downgraded Spanish banks en masse overnight and Fitch cut its debt rating for Greece.

London’s blue chip index was down 29.93 points, or 0.6 percent at 5,308.45, by 0733 GMT, having closed below 5,400 for the first time this year on Thursday, and set to record its third-straight week of losses, as turmoil in the euro zone dominated sentiment.

“I have been heavily short of the market for the past two weeks and cannot see any light at the end of the tunnel,” a London-based trader said.

“There’s still belief that central banks and policymakers will step in to support stricken euro zone countries as the consequences of a break-up are too ugly to bear thinking about, but the uncertainty is what is killing the market,” he said.

Banks, which have massive exposure to the euro zone crisis, fell again and are down nearly 30 percent over the last three months.

While Moody’s’ downgrade of 16 Spanish banks and Fitch’s cutting of Greece’s sovereign debt rating by another notch was expected, confidence was not helped by persistent rumours of runs on Greek and Spanish banks, vehemently denied by authorities.

“With sentiment towards risk assets already extremely fragile, the prospect of a run on the banks is hardly helpful,” said Ian Williams, equity analyst at Peel Hunt.

LONDON, May 16 (Reuters) – Banks dragged Europe’s top shares lower in choppy trade on Wednesday as investors worried over the stability of the euro zone lacked confidence to buy risky assets.

The FTSEurofirst closed down 4.89 points, or 0.5 percent, at 992.81, falling for a third consecutive trading day and hovering around 4-1/2 months lows. The index is down more than 10 percent from its 2012 peak.

Equities took a late hit after sources said the European Central Bank had stopped monetary policy operations with some Greek banks as they had not been successfully recapitalised.

Failure by Greek political parties to form a government after an inconclusive election earlier this month has left investors fretting Athens might leave the euro zone and about possible contagion to other larger economies.

Clemente De Lucia, euro zone economist at BNP Paribas, said quantifying the cost of Greece exiting the euro would be difficult but would be less than if it had happened a year ago as companies had taken measures to reduce exposure.

Banks have shed 18 percent in the last three months as euro zone concerns have resurfaced. Nomura said Greek exit costs were manageable, but that contagion concerns were harder to control

“Confidence and valuations (of banks) are at a low ebb and it is possible that the market could react more favourably to France’s post-election politics, Germany’s more accommodative stance on inflation, and a better balance between austerity and growth in the fiscal pact,” Nomura said.