Europe close: Stocks edge higher on thin trading volumes
European stocks edged higher amid lower than usual volumes as traders stateside took a break for Thanksgiving.
The benchmark Stoxx Europe 600 index was up 0.31%, Germany’s DAX rose 0.25% and France’s CAC 40 gained 0.29% and 0.17%.
“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.
That followed a report showing that German GDP growth slowed to a 0.2% quarter-on-quarter clip in the third quarter, after rising by 0.4% over the previous three months.
Consumer confidence in the euro area´s largest economy on the other hand ticked higher, with GfK predicting an improvement to 9.8 in its index for December (consensus: 9.7).
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 were closed for Thanksgiving and equity trading hours would 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 down as investors continued to look to next week’s OPEC meeting in the hope that a production cut will be agreed.
West Texas Intermediate was off 0.2% to at $47.88 a barrel and Brent by 0.22% to $48.84 a barrel.
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-tdax 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.