European shares flat after strong rally

LONDON, March 28 (Reuters) – European shares were flat early
on Monday, after rising the most in six months last week, and
with some investors remaining cautious on renewed concern about
Japan’s nuclear crisis and growing unrest in the Middle East.

At 0704 GMT, the FTSEurofirst 300 (.FTEU3: Quote, Profile, Research) index of top
European shares was down 0.03 percent at 1,124.27 points, after
rising 3.3 percent last week, the biggest gain since September.

“We had a nice bounce last week. Markets have been resilient
in the face of some hideous news,” said Justin Urquhart Stewart,
director at Seven Investment Management. “All it would take is
fear of another area of concern in the Middle East to knock the
market back down.”
AstraZeneca’s (AZN.L: Quote, Profile, Research) rose 1.3 percent after the British
and U.S. tax authorities have reached an agreement over the
drugmaker’s tax affairs that will boost its earnings per share
in 2011. [ID:nLDE72R06F]
(Reporting by Brian Gorman)

European shares flat after strong rally