* FTSEurofirst 300 index up 0.04 pct
* Nestle, ING fall after results
* E.ON gains after earnings beat forecasts
By Joanne Frearson
LONDON, Aug 12 (Reuters) - European shares were flat in
early trade on Wednesday, with gains in the utility sector
offsetting falls in financials and food producers, as investors
awaited the outcome of the U.S. Federal Reserve's meeting.
By 0909 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.04 percent at 932.87 points, having
been down as low as 924.30 points earlier. The pan-European
index has surged 43 percent since hitting a floor in early
March.
"The market is all looking a bit tired today. It has had a
very good run now and it is now time to take stock. We are
getting closer to September which is traditionally one of the
worst months for the market, so maybe investors are thinking
about that," said Howard Wheeldon, strategist at BGC Partners.
Financials were heavyweight losers on the index. Dutch
bancassurer ING Groep <ING.AS> fell 5.2 percent as profits came
in well below the expectations. []
Finnish insurance company Sampo <SAMAS.HE> was down 1.3
percent after it reported a surprise drop in second-quarter
pretax earnings, weighed by weaker dividend income from
investments, but stuck to its outlook for 2009. []
In the banking sector, HSBC <HSBA.L>, Barclays <BARC.L>,
Banco Santander <SAN.MC> and Deutsche Bank <DBKGn.DE> were
0.4-1.1 percent lower.
Food producers were in the doldrums. Nestle <NESN.VX>
slipped 3.1 percent after it said organic sales grew 3.5 percent
in the first half, missing forecasts. []
BHP BILLITON FALLS
Miners were lower as copper <MCU3=LX> fell 1.6 percent.
Anglo American <AAL.L>, Antofagasta <ANTO.L>, Eurasian Natural
Resources Corporation <ENRC.L>, Rio Tinto <RIO.L> and Xstrata
<XTA.L> lost between 0.9 and 1.8 percent.
BHP Billiton <BLT.L> was down 0.5 percent after it gave a
cautiously optimistic outlook for commodities demand after
posting a 51 percent dive in second-half profit, its first
profit fall in seven years. []
However, energy stocks gained as crude prices <CLc1>
steadied at around $69 a barrel. BG Group <BG.L>, Royal Dutch
Shell <RDSa.L> and Tullow Oil <TLW.L> were up 0.4 to 2.1
percent.
E.ON <EONGn.DE> was up 4 percent after it reported earnings
that beat market expectations, following strong results from
major European peers such as France's EDF <EDF.PA> and Iberdrola
<IBE.MC>. []
Later on investors will focus on the outcome of the Fed's
policy-setting committee meeting at 1815 GMT, which is seen
holding its benchmark overnight rate in a range of zero to 0.25
percent.
"I don't think you are going to get anything negative out of
the Fed today. What you want to see is a central bank that is
not going to take any risks on the deflationary side and
withdraw policy earlier," said Bernard McAlinden, strategist at
NCB Stockbrokers.
"As long as you see the Fed in that mode, it will be good,"
he said.
Across Europe, the FTSE 100 <> index was down 0.1
percent, Germany's DAX <> was up 0.3 percent and France's
CAC 40 <> was 0.03 percent higher.
Elsewhere, Chinese stocks sank 4.7 percent to their lowest
close in four weeks, while Japan's Nikkei average <>
slipped 1.4 percent retreating from a 10-month high.
[] []
(Editing by Hans Peters)
