than-expected fourth quarter results. U.S. stock index futures indicated a flat start on Wall Street. Europe's fourth-quarter earnings season has come in slightly better than expectations, but scorecards due on Thursday from heavyweights such as Ericsson and consumer giant Unilever will determine if markets can rally further. Drugmaker GlaxoSmithkline, BT, France Telecom and DaimlerChrysler also report results. "We are starting to see a balance between growth and value in the telecoms sector," said GesMadrid's Caro, who fancied Vodafone, Telefonica and Deutsche Telekom. The media sector was also an overweight and was supported by a recovery in the advertising sector, Caro said. Around Europe, London's FTSE 100 and Zurich's SMI were 0.2 percent weaker, Frankfurt's DAX was off 0.27 percent and in Paris, the CAC-40 was flat. German drugmaker Schering lost 1.7 percent after disappointment over a lack of guidance on key products overshadowed a 11 percent rise in 2004 operating profit. Basic resources were weaker with miner Rio Tinto knocked down 1.3 percent after Morgan Stanley cut its rating on the stock. Miner Xstrata edged up after the investment bank upgraded its stance on the stock. Handset casing maker Perlos, a supplier to mobile phone leader Nokia rose 8 percent as it forecast second-quarter sales to rise from the first quarter.
