Europe close: Stocks end mixed as commodities drift lower

European stocks ended on a mixed note on Thursday, with investors keeping a wary eye on commodity markets and with anticipation building ahead of next week’s US Federal Reserve policy meeting.

The benchmark Stoxx Europe 600 index slipped 0.27% to 363.21 points, while Germany’s DAX-30 managed to keep its head slightly above water, rising 0.06% to 10,598.93 points.

In London, the FTSE 100 was down 0.63% after the Bank of England kept interest rates and the asset-purchase programme unchanged at 0.50% and £375bn, as was widely expected.

The imminent start of policy tightening by the US Federal Reserve does not mean a bear market might be about to start, Credit Suisse strategist Andrew Garthwaite said on Thursday, although losses might be expected.

“On a tactical basis, it is true that the first hike by the Fed has historically triggered about a 7% fall in US stocks.

“And there are plenty of other warning signals on US equities currently […] though it has never marked the end of a bull market.

“Typically, six months later equities are, on average, up 2.2% from pre-Fed tightening levels,” Garthwaite said.

Front month Brent crude futures finished down 1.39% to $39.56 per barrel in ICE trading.

On Thursday, the Organization of the Petroleum Exporting Countries revealed crude output rose by 230,000 barrels per day (bpd) to 31.7m bpd in the last month.

Three-month copper futures had drifted 0.3% lower by the close to hit $4,588.00 per metric tonne on the LME.

In corporate news, Premier Inn and Costa owner Whitbread slipped as investors were left disappointed by signs of weakness at the Costa division after the company’s interim management statement.

French hotel group Accor recovered from early weakness after announcing a $2.9bn acquisition.

Shares in Zara owner Inditex were lower despite the company saying that net profit rose 20% in the first nine months of the year.

On the upside, Glencore received a boost after outlining a new cost-cutting programme and new debt reduction forecasts.

Chemicals company Syngenta was slightly higher as news of a possible merger between Dow Chemical and DuPont sparked hopes of a renewed flurry of takeover bids for European firms.

Lloyds Banking Group shares popped higher after the bank said it has won an appeal to buy back high-interest bonds early.

Stock in EDF rocketed after the French utility company lifted its 2015 profit target.