European stock indexes ended down but off their lows yesterday as a profit warning from Unilever renewed pressure on consumer goods firms and rising oil prices kept investors wary of a slowdown in global growth.
Drug giant Roche lent support as it gained 2.4 per cent to 129.25 Swiss francs after some positive late-stage data on its cancer drug, Tarceva.
Dresdner Kleinwort Wasserstein raised its recommendation on Roche to "buy" from "add" and increased its price target to 149 francs.
By 1532 GMT, the FTSE Eurotop 300 index of pan-European blue chips was unofficially closed 0.4 per cent lower at 997.7 points, erasing most of Friday's gains.
Stocks to fall outnumbered those to rise by almost three to one and turnover was moderate at about two billion euros. The narrower DJ Euro Stoxx 50 index ended down 0.5 per cent at 2,776.1 points.
The Eurotop 300 hit an 11-week peak on Friday, having bounced strongly from its 2004 low of mid-August and some analysts see potential for further gains.
"There are strong fundamental reasons for equities to rise," said Lehman Brothers strategist Gareth Williams.
"Valuations are attractive relative to bonds and we think dividend payments are likely to rise by around 20 per cent over the next year."
Seasonal trends were also supportive, with the fourth quarter the best performing quarter of the year, on average, he added. Unilever was the biggest drag on markets as it closed down 4.3 per cent at €47.83, having earlier hit a four-year low of €46.65.
The Anglo-Dutch giant cut its forecasts for profit growth this year by more than half, saying stiff competition and poor weather had hurt trading in July and August.
Peers suffered, with Cadbury Schweppes down one per cent and Danone off 1.4 per cent, while across the Atlantic, Colgate-Palmolive slumped 10 per cent after issuing a profit warning of its own.
In New York, the Nasdaq Composite Index rose 0.3 per cent to 1,915.7 points, while the Dow Jones industrial average was 0.6 per cent weaker at 10,226.6 points, as Colgate's profit warning and high oil prices weighed on blue-chips.
US light crude rose above $46 a barrel after Russia's Yukos suspended some oil exports to China and concern lingered over storm-related supply disruptions in the US.
European energy stocks rose as investors pinned their hopes on higher oil prices boosting profits.
Shell closed up 1.2 per cent while BP advanced 1.7 per cent.
Around Europe, London's FTSE 100 and Frankfurt's DAX both closed 0.3 per cent lower, while Paris's CAC-40 ended down 0.6 per cent. In Zurich, the SMI rose 0.1 per cent.