European shares edged lower today after strong gains in the previous session, pegged back following an earnings miss from Ericsson and weaker-than-expected French data.

Shares in the Swedish mobile telecom equipment maker fell 4.5 per cent, the top FTSEurofirst 300 faller, after missing first-quarter sales and profit forecasts, hit by weak trading in North America.

Investors were focussed on euro zone purchasing managing index (PMI) data after China’s flash factory activity numbers for April showed a stabilisation in the economy.

France’s CAC 40 index fell 0.3 per cent, underperforming a 0.2 per cent drop on the pan-European FTSEurofirst 300, after PMI data for the country showed waning momentum in its fragile economic recovery. France’s manufacturing and services figures came in slightly below expectations, albeit still in expansion territory.

By contrast, survey data from Germany came in ahead of expectations, posting its 12th straight month of expansion. Germany’s DAX eased just 0.1 per cent.

By 0801 GMT the pan-European FTSEurofirst 300 was down 0.2 per cent at 1,344.52, after surging 1.3 per cent on Tuesday.

Earnings news was mixed, continuing a theme of the season so far where 53 percent of STOXX Europe 600 companies that have reported results have beaten or met expectations.

Reuters