* FTSEurofirst 300 index closes down 0.1 pct
* Ericsson falls on economic woes
* Syngenta lower as cuts 2009 outlook
By Joanne Frearson
LONDON, July 24 (Reuters) - European equities ended a shade
lower on Friday after advancing for nine straight sessions, with
weaker technology stocks overshadowing gains made by financial
shares.
The market came under pressure after data showed that U.S.
consumer confidence waned in late July to its lowest reading
since April. []
The FTSEurofirst 300 <> index of top European shares
ended 0.1 percent lower at 907.39 points after rising as high as
915.34, its highest level since mid-November last year.
"We are running out of steam following nine days of
uninterrupted gains. While we have had some reasonable
second-quarter results, there is nothing to say the crisis is
over yet," said Howard Wheeldon, strategist at BGC Partners.
Despite Friday's decline, the index is up 11.1 percent over
the past two weeks and has gained 9 percent this year. It has
jumped 40 percent after a record low in early March, but is
still down around 44 percent from a multi-year peak in 2007.
Technology stocks were the worst performers. Ericsson
<ERICb.ST> slumped 7.7 percent after reporting the economic
downturn was now taking a bigger toll on its market.
[]
Alcatel-Lucent <ALUA.PA>, Infineon Technologies <ASML.AS>
and Nokia <NOK1V.HE> were down 1.9-3.9 percent.
Chemicals stocks were in the doldrums. Syngenta <SYNN.VX>
fell 6.7 percent after the group said it cut its 2009 outlook,
while Bayer <BAYG.DE>, Solvay <SOLB.BR> and Wacker Chemie
<WCHG.DE> were 0.9-2.3 percent lower.
Amongst drugmakers, Merck's <MRCG.DE> plummeted 14.7 percent
after advisors to European Union regulators recommended that
Erbitux should not be used to treat lung tumours, the world's
most common form of cancer.
VODAFONE GAINS
Banks were among top gainers. Standard Chartered <STAN.L>,
Societe Generale <SOGN.PA>, Banco Santander <SAN.MC> and
Barclays <BARC.L> were up 1.3-3.3 percent.
Telecommunication stocks were in demand. Vodafone <VOD.L>
gained 2.9 percent after it reported in-line sales and
reiterated its full-year outlook. []
Charts show the recent rally has been technically bullish,
suggesting the market has become confident a two-year bear run
has ended.
After rebounding from March's record low of 645 points, the
index retreated in late June and early July from the first
strong chart barrier that it encountered: resistance between 879
points, the 23.6 percent retracement of its drop from mid-2007,
and this year's peak of 895, hit in January. []
While that resistance band held, the market could not be
said to have established a strong floor; technically, there was
a significant risk of a drop back to fresh lows.
"Markets have moved from the bottom to the top of their
recent trading range in a very short space of time. We probably
need some time to pause for breath," said Henk Potts, equity
strategist at Barclays Stockbrokers.
"Valuations are rapidly approaching their fair value, which
could potentially cut upside momentum in the near term, although
a better-than expected earnings season will certainly see some
upgrades in due course and give scope for further gains in the
longer term," he said.
Across Europe, the FTSE 100 <> index was up 0.4
percent, Germany's DAX <> was down 0.3 percent and
France's CAC 40 <> fell 0.2 percent.
(additional reporting by Atul Prakash; Editing by David
Cowell)
