Europe midday: BHP bid for Anglo in focus, but stocks in the red

European shares fell in early trade on Thursday amid a deluge of earnings, trading updates, disappointing results from US tech giant Meta and BHP's $38bn bid for rival mining giant Anglo-American.

The benchmark Stoxx 600 index was down 0.32% at 504.01 with most major European bourses lower. Britain's FTSE 100 bucked the trend with a 0.60% rise to 8088 - hitting a record high for the third day in a row.

Anglo American shares surged 12% after it confirmed it had received an unsolicited non-binding and highly conditional all-share takeover proposal from Australia’s BHP Group.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "The buyout offer from BHP, the world’s largest publicly listed miner, for Anglo American, won’t just shake up the mining industry, but will send a fresh chill through the City of London.

"There are concerns that if the deal goes through it could be the tip of the iceberg and more giants could leave the exchange. It comes hot on the heels of speculation that Shell might up sticks and leave for New York, rumours that Ocado may be considering leaving for the Big Apple, and follows the crushing disappointment of home-grown chip designer Arm choosing the Nasdaq over the FTSE 100."

In economic news, there were further signs that the German economy - Europe's biggest - may be heading towards recover with the Gfk consumer climate indicator rising to a two-year high of -24.2 for May. The data comes after a better-than-expected composite PMI survey and Ifo business climate survey.

In an absolute torrent of quarterly results, Sanofi after the French drugmaker posted upbeat numbers. Germany online takeaway food company Delivery Hero climbed almost 10% after lifting its annual revenue outlook.

Shares of Adyen slumped 12% to the bottom of the Stoxx after the Dutch digital payment company missed expectations on first-quarter sales.

Elsewhere, shares in UK bank Barclays gained despite a 12% fall in first-quarter profits. Consumer goods conglomerate Unilever was up after a positive trading update.

Banco Sabadell surged after posting a 50% rise in first-quarter net profit.

Reporting by Frank Prenesti for Sharecast.com