Awwal 11, 1432 / April 15, 2011, SPA -- European equities edged higher on Friday, helped by auto shares, though investors were cautious after Moody's cut Ireland's sovereign rating and on worries high Chinese inflation could prompt more monetary policy tightening, as Reuters reported. At 0706 GMT, the FTS Eurofirst 300 index of top European shares was up 0.2 percent at 1,130.90 points after hitting a two-week low in the previous session. "The fact that Moody's downgraded Ireland is certainly not helpful for sentiment. It once again shows that the troubles facing the euro zone are not completely behind us and may resurface at any given point," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets. "Over the next couple of months we will be probably looking at a weaker and more nervous market." Moody's cut Ireland's sovereign rating by two notches and kept its outlook on negative, a day after fellow ratings agency Fitch upgraded its outlook for the country. Ireland's ISEQ was up 0.1 percent after opening lower. Automobile shares rose 0.6 percent, bouncing back after a sell-off in the previous session.
