European shares slipped off three-week highs on Friday, with luxury
goods group Richemont falling on weak sales, while a rebound in the euro
also pegged back the region's stock markets.
The pan-European
FTSEurofirst 300 index, which had reached a three-week high on Thursday,
was down by 0.3% at 1 613.84 points by the middle of the trading
session.
European equities have rallied this year on the back of a government bond buying programme and record low interest rates from the European Central Bank (ECB). These have hit returns on cash and bonds and driven investors over to the better returns on offer from the stock market.
This has also pushed down the euro on currency markets, benefiting European exporters, but a recent batch of weak US economic data has caused the euro to rebound slightly against the US dollar.
The euro hit a session high against the dollar on Friday, with ECB President Mario Draghi reiterating his call for euro zone countries to reform their economies, warning that future growth would remain modest.
"Some of the US data has put dollar weakness and the euro's strength back into play," said Logic Investments' Harry Shann.
Shann said he would look to sell into any rallies on European stock markets given this context.
"We are looking to sell into strength at the moment, coming into the summer months."
European equities have rallied this year on the back of a government bond buying programme and record low interest rates from the European Central Bank (ECB). These have hit returns on cash and bonds and driven investors over to the better returns on offer from the stock market.
This has also pushed down the euro on currency markets, benefiting European exporters, but a recent batch of weak US economic data has caused the euro to rebound slightly against the US dollar.
The euro hit a session high against the dollar on Friday, with ECB President Mario Draghi reiterating his call for euro zone countries to reform their economies, warning that future growth would remain modest.
"Some of the US data has put dollar weakness and the euro's strength back into play," said Logic Investments' Harry Shann.
Shann said he would look to sell into any rallies on European stock markets given this context.
"We are looking to sell into strength at the moment, coming into the summer months."
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