* FTSEurofirst 300 index up 0.01 percent
* Financials slip, telecoms firmer
* Roche gains on drug trial
By Joanne Frearson
LONDON, Dec 2 (Reuters) - European shares were flat at
mid-morning on Wednesday after notching up their biggest one-day
gain in 4-1/2 months in the previous session, with falls in
financial stocks offsetting gains in drugmakers.
By 0935 GMT, the pan-European FTSEurofirst 300 <>
index of top shares was up 0.01 percent at 1,011.14 points.
The index has gained 57 percent since reaching a lifetime
low in early March and is up nearly 22 percent for the year.
Investors awaited U.S. ADP Employment report, due at 1315
GMT. Economists in a Reuters survey expected a loss of 155,000
jobs versus an October job loss of 203,000.
"Investors have been cutting their positions in the run up
before the Christmas holiday and minimising risk. It is risk
aversion at the moment," said Justin Urquhart Stewart, director
at Seven Investment Management.
"With the ADP report, it is going to be fascinating to see
if the level of unemployment is continuing to increase or if
there are any signs it is bottoming out. The expectation is that
is going to be weak so any improvement will be an encouraging
sign."
Financials took most points off the index, with banking
stocks weighing heavily. HSBC <HSBA.L>, BNP Paribas <BNPP.PA>,
Deutsche Bank <DBKGn.DE> and Standard Chartered <STAN.L> were
down 1.4-2.5 percent.
Insurers ING Groep <ING.AS> and Axa <AXAF.PA> were down 1.5
percent and 1.8 percent respectively.
ROCHE GAINS
On the upside, drugmakers were in demand. Swiss drugmaker
Roche <ROG.VX> rose 0.9 percent after saying a diabetes
treatment currently undergoing Phase III trials met primary
endpoints in the most recent studies. []
Telecoms stocks featured among the biggest risers. Nokia
<NOK1V.HE> gained 1.5 percent ahead of an investor day where
investors expected the company to unveil an upturn in handset
margins and a more competitive smartphone offering in 2010.
[]
Vodafone <VOD.L> was up 1.8 percent after Credit Suisse
raised its target price to 160 pence from 150 pence, and
Telefonica <TEF.MC> was 0.7 percent higher.
"We still have decent news flow, although the Dubai World
incident illustrates we do have these time bombs ticking away
fortunately in this case it is a localised issue," said Mike
Lenhoff, strategist at Brewin Dolphin.
"What it suggests is there is still pressure on policy
makers to maintain easy monetary conditions and keep interest
rates where they are."
Across Europe, the FTSE 100 <> index was down 0.2
percent, Germany's DAX <> was 0.1 percent lower and
France's CAC 40 <> was down 0.1 percent.
(Reporting by Joanne Frearson; Editing by Dan Lalor)
((joanne.frearson@thomsonreuters.com; +44 207 542 2773, Reuters
Messaging:joanne.frearson.thomsonreuters.com@reuters.net))
