Europe midday: Stocks flat ahead of rate calls; Schibsted surges on split plans

European stocks were flat as investors turned their attention to central bank meetings this week for further clues on the future path of interest rates.

The pan-regional Stoxx 600 index had barely moved the needle by lunchtime, with most major bourses in the red. The US Federal Reserve, European Central Bank and Bank of England all publish rate decisions this week.

Sentiment was also tempered by data released over the weekend showing China was moving deeper into deflationary territory as consumer prices fell 0.5% year on year in November, with food prices slumping and core inflation unmoved.

"With global growth expected to slow further in 2024, there will be little support coming from overseas, while the property market’s woes keep consumer confidence subdued. The clamour for a big bazooka of stimulus is growing to restore vigour to the economy," said Hargreaves Lansdown analysts Susannah Streeter.

"Authorities also have their eye on debt laden local authorities which pose another risk to financial stability. Hopes are being focused on the Central Economic Work Conference later this month for more medicine to try and put the economy on the road to better health.’’

In equity news, shares in Norway's Schibsted surged by 17% after announcing it had made a non-binding agreement worth $568m to sell its news media operations to its main owner Tinius Trust, splitting the group into two companies.

If finalised, the traditional media company would be fully owned by the Tinius Trust, while the other, owning online market places such as classified ads and other ventures, would remain listed on the stock market, Schibsted said in a statement.

Syensqo shares jumped on the specialty chemicals firm’s first day of trading since its spin-off from Belgian multinational Solvay.

German renewable energy company Encavis fell 5% after Morgan Stanley cut the stock to underweight from equal-weight.

Reporting by Frank Prenesti for Sharecast.com