European shares ended flat on Tuesday as strong corporate results from the likes of Deutsche Post offset some worries about the economic recovery fuelled by disappointing U.S. data.
The pan-European FTSEurofirst 300 index of top shares ended barely changed at 1,070.79 points after closing at a three-month high on Monday.
The index has gained almost 66% from its lifetime low of March 9, 2009, but is down 4% from a 2010 peak in mid-April.
Concern over the pace of economic recovery was reinforced by data showing U.S. consumer spending and incomes were flat in June while the index for pending sales of previously owned homes fell to a record low.
"A bout of weakness in the U.S. in reaction to worse-than-expected home sales and factory orders data unsettled traders, but these short-term dips are still tempting in some buyers," said Will Hedden, sales trader at IG Index in London.
Among individual movers, Deutsche Post DHL added 3.7%. Europe's biggest mail and express delivery company raised its 2010 outlook after global economic recovery boosted freight volumes in the second quarter.
Other gainers on the back of robust results included Germany's BMW, which rose 3.1% after the world's top maker of luxury cars reported forecast-beating profit for the second quarter.
Heavyweight miners were among the decliners, with Anglo American, BHP Billiton and Kazakhmys off 0.7 to 1.3% as metals prices retreated across the board.
Energy firms were higher. Crude prices pushed to fresh three-month high above $82 a barrel as the dollar weakened. BP, BG Group and Royal Dutch Shell added 0.6 to 0.8%.
Across Europe, Britain's FTSE 100 ended flat, Germany's DAX rose 0.3% and France's CAC 40 shed 0.1%.
In a positive sign for equities, the euro zone's blue-chip STOXX Europe 50 index held above a key technical level for the second day in a row.
The index closed 0.1% lower at 2,818.97 points, but above the 2,805.95 level which represents a 61.8% Fibonacci retracement of the fall to its May low from a high in April.
BANKS MIXED
Banks gave up some of Monday's sharp gains, with Barclays and Societe Generale off 0.4 and 2%, respectively, while Standard Chartered added 2.2% ahead of first-half results due on Wednesday.
Heavyweight HSBC fell 1.3%, retreating after Monday's gains on forecast-beating results as broker RBS downgraded the stock to "hold" from "buy".
Broker comments also weighed on Yara International, which lost 3.1% as Credit Suisse cut its recommendation on the Norwegian firm to "neutral" from "outperform".
Among other fallers, Investec, the South African investment bank and asset manager, fell 5.7% after saying it had raised 104.5 mln pounds in a share placing. The company is looking to shore up its capital base.
On the upside, Centrica added 3.6% as Goldman Sachs raised its earnings forecasts and repeated its "buy" rating on Britain's biggest gas supplier.
