* FTSEurofirst up for 16th time in past 18 sessions
* Most indexes slipping into 'overbought' territory
* Peugeot up on stake report, hedge cuts short position
* BofA-Merrill strategists bet on 'shunned' Europe stocks
By Blaise Robinson
PARIS, Dec 12 (Reuters) - European shares edged higher on
Wednesday, extending a steep three-week rally as investors bet
the Federal Reserve will unveil a new round of bond-buying to
suppo
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