Europe close: Benchmarks manage to hold onto gains
Stocks finished in the black on Thursday even as traders pondered out loud whether to participate or not, while keeping a wary eye on the news-flow out of Capitol Hill regarding Republicans'push for tax cuts.
By the closing bell, the benchmark Stoxx 600 was ahead by 0.78% or 2.97 points to 384.93, alongside a rise of 0.55% or 70.85 points to 13,047.22 for the German Dax and a 0.22% or 47.72 point advance on the FTSE Mibtel to 22,206.60.
"Stocks have continued the rebound that began late yesterday, when buyers came in to lift European and UK markets off their lows.
"The sudden outburst of volatility certainly caught many on the hop, with the slow, steady grind higher over the past few months lulling people into a false sense of security. This kind of shakeout is healthy, but already it looks like the bargain hunters have seized their opportunity," commented IG's Chris Beauchamp.
However, others in the City were more cautious, such as CMC Markets's Michael Hewson.
Writing before the start of trading on Thursday, Hewson told clients: "With concerns about high yield credit prompting some profit taking along with a recent survey that showed investors underweight in cash, it wouldn't take much more of a push for markets to fall even further as portfolio managers start to lock in profits as we head towards year end.
"This concern about 'irrational exuberance' could prompt a rush for the exits and potentially send these two particular markets (the Nikkei and Dax) at least another 10% lower, if there is no sign of a stabilisation in the next day or so."
In the background, traders were also keeping a close eye on the prospects for tax reforms in the US.
Overnight, US senator Ron Johnson said he would not support the Senate Republicans' tax package. That meant it would now suffice for just two other senators to pull their support to keep the plan from being approved by the start of December.
Meanwhile, as expected Eurostat reported that consumer prices in the single currency bloc rose by 0.1% on the month in October and by 1.4% over the year, alongside a 0.9% increase at the 'core' level.
Elsewhere, according to ACEA car registration in the European Union grew at a year-on-year clip of 5.9% following a 2.0% drop in the month before. They were even stronger within the single currency bloc, accelerating to a 8.7% clip versus a 1.3% rise in September.