European share indexes closed steady yesterday as more disappointing updates from the technology sector weighed but miners and oil stocks rose on expectations of continued high commodity prices.

Forecasts by chipmaker Infineon of further declines in sales and earnings in the current quarter dragged the German stock 2.8 per cent lower.

Rival STMicroelectronics fell 2.6 per cent ahead of its fourth-quarter results on Wednesday, while Philips closed down 0.6 per cent after its LG.Philips LCD flat-screen unit reported a 94 per cent fall in quarterly profits.

By 1642 GMT the FTSEurofirst 300 index of pan-European blue chips was unofficially closed unchanged at 1,047.5 points thanks to a late rally, while the narrower DJ Euro Stoxx 50 index shed 0.1 per cent to 2,938.9 points.

European stocks have largely stalled after hitting two-and-a-half-year highs early in the new year.

"We had a very strong rally in the final quarter of last year and I think what we have needed is a pause for breath and that's what we are seeing in the very short term," said Nigel Bolton, head of European equities at Scottish Widows Investment Partnership.

"Over the next few weeks we've got a lot of companies coming out with statements and guidance and that's probably going to determine the market's move for the next couple of months or so, once we've had time to absorb them."

With markets not benefitting from the seasonal "January effect" which often lifts markets early in the new year, traders and investors were looking for other themes to follow, said David Bowers, chief global investment strategist at Merrill Lynch.