* FTSEurofirst 300 down 0.2 pct, Euro STOXX 50 down 0.6 pct
* Two in three companies missing revenue forecasts -StarMine
* Stocks still seen very attractive relative to bonds
By Blaise Robinson
PARIS, Nov 5 (Reuters) - European shares set new five-year
highs on Tuesday before dipping after mixed results from blue
chips, with uncertainty in the run-up to an ECB policy meeting
also keeping investor enthusiasm in check.
Shares in BMW dropped 3.2 percent in brisk volumes
after the German carmaker said quarterly profit at its auto unit
fell more than expected, hurt in part by price discounts in core
Holcim, the world's largest cement maker by market
value, fell 0.6 percent after warning that 2013 sales volumes
would be lower than last year, blaming sluggish demand in some
major emerging markets.
Results were brighter at Beiersdorf, whose stock
surged 5.4 percent. The maker of Nivea creams and lotions lifted
its 2013 sales forecast and said it had gained market share from
rivals in Europe.
Half way into the European earnings season, 52 percent of
STOXX Europe 600 companies have missed profit
forecasts, and two thirds have missed revenue forecasts,
according to data from Thomson Reuters StarMine, a sharp
contrast with the second-quarter result season during which only
42 percent of companies missed profit forecasts.
At 1124 GMT, the FTSEurofirst 300 index of top
European shares was down 0.2 percent at 1,291.26 points, after
rising as high as 1,297.29 in early trade, a level not seen
"We've just had a pretty nice rally in stocks, so
tactically, it's tempting to book a bit of profit at this
stage," said Koen Maes, global head of asset allocation at Dexia
Asset Management, which has 73 billion euros ($98 billion) under
"But with so much cash still on the sidelines and with
equities looking very attractive relative to bonds, the
medium-term trend for stocks is still bullish."
The FTSEurofirst 300 has gained nearly 6 percent in the past
four weeks, boosted in part by expectations that both euro zone
and U.S. monetary policy will remain accommodative for some
U.S. officials said on Monday that the Federal Reserve was
in no rush to cut its programme of bond purchases, backing
market expectations that the equity-friendly stimulus will not
be trimmed until early next year.
In Europe, recent tame inflation figures have sparked
speculation about a possible rate cut by the European Central
Bank when it meets on Thursday, though all but one of 23 euro
money market traders polled by Reuters on Monday expect the ECB
to leave borrowing costs unchanged at 0.5 percent.
"I don't think they will cut rates, because frankly it
wouldn't change anything at this point in terms of impact on the
economic recovery," Dexia AM's Maes said.
Around Europe, Britain's FTSE 100 index was down 0.5
percent, Germany's DAX index down 0.4 percent, and
France's CAC 40 down 0.5 percent.
The euro zone's blue-chip Euro STOXX 50 index
was down 0.6 percent, at 3,044.06 points. The index has been
stuck for a week below a strong resistance level at 3,077.24,
which represents a peak hit in early 2011 and above which it
would hit five-year highs.
Despite the day's losses, Aurel BGC chartist Gerard Sagnier
said he remained positive.
"The trend is quite bullish at the moment, there's just no
sign of weakness. At this point, investors who missed the rally
so far are forced to jump in. The upside potential for the next
three to four months is around 6 to 7 percent for indexes."