Europe close: Stocks finish lower in profit-taking

European stocks ended on a mixed note on Thursday despite well-received corporate news, amid profit-taking following several sessions of gains.

The benchmark DJ Stoxx 600 index edged up by 0.04% to 328.91, France’s CAC 40 was up 0.15% to 4,239.76, while Germany’s DAX was 0.92% higher to 9,463.64.

Out on the periphery however, the situation was more downbeat, with Spain’s Ibex 35 sporting losses of 0.83% by the close and the FTSE Mibtel retreating 1.53% to 17,112.36.

Markus Huber, senior analyst at Peregrine & Black, said while sentiment has turned positive from neutral over the last couple of days, much of the rebound so far has been caused by bargain hunting rather than any actual fundamental change as far as the outlook for global growth and corporate profits is concerned.

“Although being overbought in the short-term, momentum still seems to be strong with traders preferring to buy dips for now,” he said.

Oil prices were in the black, staying positive following a surge in the previous session after Iran unexpectedly backed Saudi Arabia and Russia’s plan to freeze production at January levels. Still, Iran did not offer to take any action itself.

West Texas Intermediate was up 0.81% at $30.91 a barrel and Brent crude was 0.52% firmer at $34.68.

On the corporate front, British Gas owner Centrica rallied after its full year earnings beat analysts’ expectations.

BAE Systems was also on the front foot its 2015 results met expectations and the aerospace and defence group issued guidance that underlying earnings per share will rise 5% to 10% in 2016.

Air France-KLM flew higher after saying it swung to a profit in 2015, while hotels group Accor gained after posting a profit increase of nearly 11% for 2015.

On the downside, Nestle slumped after reporting a 37% decline in net profit for 2015.

Figures released by the European Central Bank earlier showed the current account surplus in the Eurozone narrowed in December.

The current account balance revealed a surplus of €25.5bn in adjusted terms compared with a revised €26.9bn the previous month.

Surpluses for goods, services and primary income were partially offset by a deficit in secondary income.

Pantheon Macroeconomics said: “The marginal decline was mainly due to a fall in the trade surplus. The goods and services surplus fell €1.0bn and €1.4bn respectively, partially offset by a €1.0bn increase in the primary income.”