Europe midday: Stocks flat amid thin volumes as US celebrates Thanksgiving
European stocks were little changed by midday, with volumes lower than usual as traders stateside took a break for Thanksgiving.
The benchmark Stoxx Europe 600 index was up 0.06%, Germany’s DAX and France’s CAC 40 were up 0.11% and 0.17% respectively and Spain’s IBEX 35 rose by 0.34%.
“The DAX and CAC soon found themselves flat, lacking any real reason to budge following the confirmation of Germany’s dismal Q3 growth earlier in the day,” said Spreadex analyst Connor Campbell.
German business confidence was fairly steady in November, according to a widely-followed survey. The Ifo Institute’s business climate index nudged down to 110.4 from 110.5 in October, just a touch below expectations for it to remain unchanged.
“The German economy seems to be unfazed by the election of Donald Trump as U.S. president,” said Ifo President Clemens Fuest.
Meanwhile, economic growth in Spain slowed as expected in the third quarter with growth at 0.7% according to the country’s national statistics institute.
Across the pond, US markets are closed for Thanksgiving and equity trading hours will be shortened on Friday.
“The usual Thanksgiving calm has descended across markets, as European investors reconcile themselves to a day of low volumes and quiet trading,” said IG chief market analyst Chris Beauchamp.
Oil prices edged higher as investors continued to look to next week’s OPEC meeting in the hope that a production cut will be agreed. West Texas Intermediate and Brent crude were up 0.3% and 0.2% to $48.10 a barrel and $49.07, respectively.
In corporate news, Remy Cointreau was on the front foot after reporting a jump in profit for the six months to the end of September.
Legal & General pushed up after announcing the sale of its Netherlands business to London-listed pensions firm Chesnara for €160m.
Rio Tinto nudged up after chief executive Jean-Sébastien Jacques said the mining giant can boost cash flow by $5m over the next five years by a new "productivity drive".
Insurer Direct Line was a high riser after Morgan Stanley upped the stock to ‘overweight’ from ‘equalweight’.
Shares in Domino’s Pizza were looking tasty after it increased its long-term target for expanding its UK store presence and reiterated its guidance for 2016 pre-tax profit.
On the downside, Thyssenkrupp fell after it posted a 4% drop in full-year profit amid a challenging steel market.
Countrywide tumbled as it issued its second profit warning this year, saying core earnings for 2016 would take a hit as a result of the UK’s vote to leave the European Union. The stock had already fallen sharply on Wednesday after Chancellor Philip Hammond unveiled a clampdown on estate agent lettings fees.