Europe midday: Stocks flat as investors mull Brexit; oil shares gain

European equity markets were largely unchanged on Thursday as investors mulled upcoming Brexit negotiations, although there were gains in the oil sector following positive news from Italian oil explorer Saipem.

At midday, the benchmark Stoxx Europe 600 index, Germany’s DAX and France’s CAX were flat.

“Markets have clearly calmed after all that mid-week excitement. Foreign exchange markets remain in focus after the UK's official triggering of Article 50, although with details of the negotiating hands of both parties still sparse, market movement is minimal at best,” Mike van Dulken and Henry Croft, research analysts at Accendo Markets said.

Oil stocks gained after Saipem announced its return to the bond market late on Wednesday. Its shares rose 1.04%. Other companies were lifted on the news with Total 0.56%higher, BP up 0.42%, and Statoil 1.73% higher.

However, oil prices were on the back foot, with Brent crude down 0.53% to $52.14 per barrel and West Texas Intermediate off 0.24% to $49.39.

Elsewhere, investors were also digesting the possible repercussions of Britain triggering Article 50 of the Lisbon Treaty which starts a two-year clock on exit negotiations with the European Union on Wednesday. Prime Minister Theresa May is set to introduce the Great Repeal Bill on Thursday, which would convert all EU laws and regulation into British law.

In currency markets, the euro was down 0.24% versus the dollar to 1.0740 and 0.3% lower against the pound at 0.86326.

The single currency weakened after the European Central Bank said that it did not mean to convey a hawkish tone to markets at its meeting earlier in the month and that it was over-interpreted.

The central bank is now hesitant to change its policy statement at its next meeting in April, according to Reuters.

The currency also slipped after inflation figures from Germany suggested price growth falling from a four year high in March.

Consumer price growth in Brandenburg fell to 1.4% from 2% in February and it was down to 1.7% from 2.5% in Hesse and Bavaria. In Saxony it declined to 1.8% from 2.4%.

In other data, eurozone inflation topped the ECB’s 2% target in February for the first time to come in at 2.1%.

In corporate news, tobacco company Imperial Brands rose 0.38% after saying it remained on target to hit first-half targets, with both revenues and earnings set to be up strongly at the reported level thanks to the weak pound.

Linde was up 0.29% after worker representatives at the German industrial gas manufacturer said they were against the planned merger with US rival Praxair.