//
The Stoxx Europe 600 Index retreated 0.7 per cent to 253.55 this morning (January 30th) as investors remained cautious over the European region's economic problems, reports Bloomberg.
Nevertheless, the gauge has enjoyed a rally of 18 per cent over the course of the year so far as US economic data offset European fears.
Ian Scott, the chief global strategist at Nomura Holdings, told the news provider the overall outlook is not positive and earning predictions are likely to require downward assessment.
"Nevertheless, even a recession in the euro area and very slow growth elsewhere is unlikely to be sufficient to undermine the market if governments and central banks are able to stabilise sovereign spreads," said Mr Scott.
European shares fell last week as talks continued over how to deal with Greek's debt, with the potential of a default from the troubled country spooking investors.
Posted by Clive Arneil
