LONDON Dec 3 European shares gave up most of
their gains in a late market sell-off on Monday, retreating from
a 17-month high due to disappointing U.S. manufacturing data and
persistent concerns about a fiscal row in the United States.
The FTSEurofirst 300 index of top European shares
provisionally closed 0.2 percent firmer at 1,121.38 points.
Earlier, the index rose up to 1,128.65, the highest since
July 2011, helped by surveys showing Chinese manufacturing
returned to growth in November and a downturn in euro zone
But European shares pared gains after a survey showed
U.S. manufacturing unexpectedly contracted.
The market also saw some technical selling, with the euro
zone's blue chip Euro STOXX 50 index failing to hold
a key resistance level of 2,600 - its September high. The index
was up 0.3 percent at 2,581.96 points.
"The index looks toppish and further short-term pullbacks
are possible," Roelof-Jan van den Akker, senior technical
analyst at ING Commercial Banking, said.
"Within the index's 50-day moving average and last week's
gap between 2,549 and 2,559, you should expect the development
of a higher bottom from where the next rally to break the strong
resistance at 2,600 could start."