European shares snap winning run as Heineken, STM miss forecasts

Reuters

LONDON, Oct 23 (Reuters) - European shares broke theirnine-day winning streak on Wednesday as blue chips includingchip maker STMicroelectronics and brewer Heineken unveiled weak updates and traders took profit on"overbought" indexes.

Heineken cut its full-year profit guidance due to a drop insales in some regions while quarterly revenues at STM fell shortof analysts' expectations, sending the stocks down 3.1 percentand 5.7 percent, respectively.

Finnish utility Fortum, fell 5.8 percent, afterit reported a weaker-than-expected underlying third-quarterprofit, which it blamed on low hydro power production.

The euro zone Euro STOXX 50 index fell 0.5percent to 3,030.24 points, with the pan-European FTSEurofirst300 also down 0.5 percent at 1,281.44, retreating froma five year-high.

The euro zone Euro STOXX 50 index was at its most"overbought" since 2006 on Tuesday, when its 14-day RelativeStrength Index, a measure of buying momentum, hit 73 points.

A reading above 70 indicates "overbought" conditions. TheEuro STOXX 50 has fallen each time its RSI came close to 73 overthe past seven years. Germany's Dax was also in "overbought"territory by the same indicator.

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