European shares edge higher for 2nd day

LONDON (BestGrowthStock) – European shares made modest gains for a second straight day on Friday, but finished lower for the week as investors continued to worry about the strength of the economic recovery.

The pan-European FTSEurofirst 300 (.FTEU3: ) index of top shares rose 0.2 percent to a provisional close of 1,045.14 points, having moved in and out of positive territory during the session. Over the week, the index fell 1.1 percent, its biggest decline in six weeks.

Delhaize (DELB.BR: ) plunged more than 11 percent after the Belgian supermarket group cut it 2010 outlook.

Economic data was mixed. European economic growth accelerated sharply in the second quarter of 2010 as Germany’s best performance since reunification more than made up for the struggles of Spain, Ireland and recession-ravaged Greece.

In the United States, retail sales rebounded in July but showed hints of lingering economic softness, as did inflation data showing underlying price pressures stuck at their lowest level since the 1960s.

Analysts played down the significance of the recovery over the last two sessions, with trading volumes lower.

“Volumes are pitiful,” said Andy Lynch, fund manager at Schroders. “Price discovery is pretty limited. The next movement is probably down. The American recovery is still in doubt … It’s all rather depressing.”

(Reporting by Brian Gorman)

European shares edge higher for 2nd day