European shares ended little changed yesterday as gains for banking shares were offset by weaker retail and technology stocks as Wall Street dipped ahead of key jobs data at the end of the week.

The FTSEurofirst 300 Index closed steady at 1,440 points on solid turnover of around 2.7 billion shares, holding year-to-date gains at around 13 per cent.

With markets expected to wind down in the lead-up to the Christmas and New Year holidays, investors were shaping their forecasts for 2007. Many see broadly similar conditions for markets, with an expected US slowdown offset by improving growth elsewhere.

"Global growth next year should be better balanced with the strengthening European and Japanese economies offsetting the slowing US economy," said Mike Turner, head of global strategy and asset allocation at Aberdeen Asset Management.

"Although we don't exclude the possibility of a correction, we don't expect a bear market in the near future either."

Royal Bank of Scotland led banks higher, gaining 4.1 per cent after saying it should beat analysts' forecasts for 2006 profits, while Anglo-Irish rose 2.8 per cent after reporting a forecast beating 38 per cent jump in full-year pre-tax profit.