Safe-haven assets were back in demand on Tuesday as investors played a waiting game ahead of a German ruling on the euro zone's new bailout fund, elections in the Netherlands and potential new stimulus from the U.S. Federal Reserve.
European shares .FTEU3, which jumped to 13-month highs last week after the European Central Bank laid out new plans to address the region's debt crisis, opened in negative territory for the second day running, down 0.2 percent at 1,105.52 points.
London's FTSE 100 .FTSE, Paris's CAC-40 .FCHI and Frankfurt's DAX .GDAXI were all lower .L .EU .N, following on from Asia, where investors, increasingly wary about China's wobbling economy, took profits from the recent stimulus-led rally.
Europe faces another testing week. Despite a late legal challenge from a eurosceptic lawmaker, Germany's constitutional court will rule on the powers of the euro zone's new ESM bailout fund on Wednesday. Dutch voters also go to the polls that day in the latest test of core Europe's resolve to keep the bloc intact.
"There is a broad consensus that the (equities) rally has really discounted all the good news that could come in the next couple of weeks and the risks are really skewed to the downside," said Peter Garnry, equities strategist at Saxo Bank.
Red more: http://www.reuters.com/article/2012/09/11/us-markets-global-idUSBRE88901C20120911http://www.reuters.com/article/2012/09/11/us-markets-global-idUSBRE88901C20120911
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