European shares fall as Greece talks rumble on

People learning how to trade may be interested to learn that European shares have endured a jittery afternoon (January 27th) as talks over Greece's debt continued and US economic data was revealed to be slightly less positive than investors had expected.

The pan-European FTSEurofirst 300 index of top shares dropped by 0.2 per cent to hit 1,049.76 points, after being as low as 1,046.44 and as high as 1,053.

Traders have remained anxious as talks over Greece's commitment to its creditors and the potential of a default from the country worried the market.

Concerns have also been raised that Portugal could follow in the footsteps of Greece, with Portuguese government bonds at record highs.

"I think we need further clarification on the Greek deal before the markets can push on further," said David Coombs, fund manager at Rathbone Brothers.

The market was also affected by the news that the US economy has grown 2.8 per cent less than forecast.

Posted by Clive Arneil