European shares constrained by macro concerns
LONDON, Oct 3 (Reuters) - European shares edged lower on Wednesday as the twin concerns of Spain, focal point of the regional debt crisis, and global growth capped momentum and kept indexes within their recent tight trading ranges.
The FTSEurofirst provisionally closed down 1.27 points, or 0.1 percent, at 1,100.62, as the index remained locked in a 30-point range established back in mid September, when the European summer rally on the back of central bank stimulus came to a halt.
The onus is now on the politicians to follow the leads set by central banks and as the market waits for Spain to ask for a bailout, investors remain reluctant to commit further to equities.
"The reality is the Spanish situation is still problematic and until (Spanish Prime Minister) Mariano Rajoy goes and asks for the bailout they can not activate the bond buying programme so we are all just waiting," Andrea Williams, European fund manager at Royal London Asset Management, said.
Williams said she has been cutting her exposure to euro zone banks given the weak growth outlook.
"There is a sense that focus is now back on the politicians and the macro picture, which is not getting any easier," she said.
French property company Gecina slipped 5 percent after two Spanish investment firms that own 31 percent of the firm filed one of the biggest bankruptcy actions in Spanish history after a bank refused to refinance a 1.6 billion euro ($2.1 billion) loan.
(Reporting by David Brett; editing by Simon Jessop)
Keywords: MARKETS EUROPE STOCKS/CLOSE