* FTSEurofirst 300 index ends down 0.01 pct
* China monetary policy move prompts mining sector selloff
* Jeronimo Martins tops fallers' list, Lafarge the gainers
By Simon Jessop
LONDON, Feb 18 (Reuters) - European shares ended flat near
29-month highs on Friday, with mining stocks among the top
fallers after China once again tightened monetary policy in an
attempt to rein in inflation.
A report citing European Central Bank policymaker Lorenzo
Bini Smaghi repeating its readiness to raise interest rates if
needed also weighed and the FTSEurofirst 300 <.FTEU> ended down
0.01 percent at 1,187.03 points. []
It was the fifth straight day the index has closed at or
near 29-month highs but some said it was due a retreat.
"People are now expecting rate rises sooner rather than
later," said Robert Quinn, chief European strategist at Standard
& Poor's. "Any talk about raising rates sooner than expected
will pull the market back."
Earlier, China had stepped up its inflation battle by
raising lenders' required reserves again to a record 19.5
percent, the fifth increase since October. []
The index's flat end to the week comes ahead of a long U.S.
holiday weekend and against a corporate earnings season backdrop
that on Friday focused on UK-listed mining firm Anglo American
<AAL.L>.
The China news and initial copper price falls hit the miner,
down 2 percent, as did what Liberum analysts described as a
"slightly stingy" dividend and news it would not sell its
troublesome Tarmac unit outright.
Instead of exiting the UK construction materials business
completely, Anglo American agreed to set up a joint venture with
French cement maker Lafarge <LAFP.PA>, which it planned to exit
gradually.
By the close, the STOXX Europe 600 Basic Resources <.SXPP>
index had fallen 1.3 percent, led by Anglo American and other
large base metals-focused miners including BHP Billiton <BLT.L>
and Rio Tinto <RIO.L>, both down more than 2 percent.
Leading the downside across all sectors, however, was
Portuguese retailer Jeronimo Martins <JMT.LS>, which ended down
5.7 percent after posting a weak outlook. []
In spite of the flat end to the day, technical analysts at
Trading Central in Paris said they remained bullish on the
ESTOXX 50 <>, citing an initial target of 3,100 points,
against Friday's close of 3,068 points.
LAFARGE LEADS GAINERS
"A bullish continuation pattern in consolidation channel is
confirmed. Furthermore, Bollinger bands are widening and the
50-day simple moving average remains ascending. In addition,
quotes are supported by an uptrend," said Philippe Delabarre.
A continued bullish tone was still apparent in U.S. stocks
before the Europe close, with the Dow Jones industrial average
<>, S&P 500 <.SPX> and Nasdaq composite <> all up
between 0.2 percent and 0.4 percent.
Leading European stock gainers were the world's two largest
cement-makers, Lafarge and Swiss-based Holcim <HOLN.VX>, both of
which ended up more than 3 percent after Lafarge's UK tie-up,
debt plans and demand outlook were well received by the market.
Of the 273 STOXX 600 companies reporting fourth-quarter
results in the current earnings season, 49 percent have met or
beaten expectations and 51 percent have missed, according to
Thomson Reuters StarMine data.
Out of the 137 firms to report so far, earnings have
negatively surprised by an average 0.6 percent, StarMine data
showed, while those still to report are expected to show an
average 1.7 percent slip from forecast estimates.
The worst performing sector so far has been utilities,
according to StarMine, with all eight firms to report missing
expectations by an average 42 percent. Top winner has been the
IT sector, with an average beat of near 11 percent.
(Editing by David Holmes)
