* FTSEurofirst 300 falls 0.1 percent in choppy trade
* Concerns about Q3 earnings season hurt sentiment
* Chart shows Euro STOXX 50 may rebound from 2,450
By Atul Prakash
LONDON, Oct 9 (Reuters) - European shares gave up earlygains and turned negative on Tuesday as concerns over slowingglobal growth and its impact on corporate earnings weighed,although charts signaled a bounce back.
The FTSEurofirst 300
was down 0.1 percent at1,099.57 points by 0849 GMT. It had earlier risen to as high as1,104.04 on speculation China might introduce more stimulusmeasures after injecting cash into the money market, and as someinvestors took advantage of Monday's sell-off to move back intothe market.
However, concerns about the global economic outlook, theeuro zone situation and the third-quarter earnings seasonresurfaced and prompted investors to sell stocks in sectors suchas industrials
, chemicalsand telecoms.
Those sub-indexes were down by 0.3 to 0.5 percent.
"Global growth drivers are slowing down and that will notonly have an impact on the third-quarter earnings but also hurtthe earnings outlook for the next quarters," Giuseppe-GuidoAmato, strategist at Lang & Schwarz in Frankfurt, said.
Analysts said that investors were trapped between positivesand negatives, with recent central bank stimulus measures havingthe potential to improve liquidity and boost growth, whilethird-quarter earnings forecasts were being slashed.
The market was expected to continue trading in a broad rangein the near term, but analysts said the overall bias remained onthe upside as the technical trend was still positive and centralbank stimulus would support equities.
"We are in a reporting season which is noisy, but betweenhere and the end of the year I see the market higher," IanRichards, global head of equities strategy at Exane BNP Paribas,said.
"Higher beta cyclical names, financials in particular, had apretty strong run. I am inclined to keep the money on thosesectors as I do think that they are still the cheapest part ofthe market."
TECHNICAL OUTLOOK
The euro zone's blue chip Euro STOXX 50
index
fell 0.4 percent to 2,486.36 points, with charts pointing tosome further declines in the coming days before a rebound.
"The greater trend is still firmly bullish. We are notseeing any major topping signals. In the near term, we areprobably going to see some buying interest at around 2,450,"Lynnden Branigan, technical analyst at Barclays Capital, said.
Any move below 2,450, which is this month's low and near its50-day moving average, could trigger a deeper correction, hesaid, adding the index was likely to face strong selling on theupside at around 2,570, its recent highs.
Among individual movers, Capita
shed 3 percent,Traders said that the outsourcing firm's investor day on Mondayfailed to excite, prompting Seymour Pierce to downgrade itsrating for the stock to "hold" from "buy".
(Editing by Susan Fenton)
((atul.prakash@thomsonreuters.com)(+44 20 7542 6189)(ReutersMessaging: atul.prakash.thomsonreuters.com@reuters.net))
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