LONDON: European shares crept higher yesterday although traders said further gains could be limited in the near term on concerns over how the European Central Bank would deal with Italy's political deadlock.
The pan-European FTSEurofirst 300 index, which had reached a 4-1/2 year intraday high of 1,193.35 points on Wednesday, was up by 0.2 per cent at 1,188.09 points by around midday.
The eurozone's blue-chip Euro STOXX 50 index advanced 0.4 per cent to 2,690.88 points, Germany's DAX rose 0.2 per cent to 7,937.83 points, nearing five-year highs reached earlier this week.
While investors said more gains were likely over the course of the year, they said in the nearer term, there was a risk markets would be volatile due to uncertainty over how the ECB would address Italy's problems. Reuters