Europe midday: Stocks waver amid earnings as euro weakens

European stocks wavered as investors sifted through more earnings, with the euro still under pressure against the dollar following European Central Bank chief Mario Draghi’s comments on Thursday.

At midday, the benchmark Stoxx Europe 600 index and Germany’s DAX were up 0.1%, while France’s CAC 40 was 0.1% lower.

Meanwhile, the euro was down 0.3% against the dollar at 1.0894, having fallen to its lowest level since March after Draghi hinted on Thursday that quantitative easing won’t be ended abruptly but stopped short of saying whether it would be extended or wound down.

FXTM Research analyst Lukman Otunuga said: “Euro/dollar was chaotic on Thursday with prices crashing to four-month lows at 1.0915 after the ECB swiftly extinguished the persistent taper talk rumours. Although interest rates and the current €80bn bond buying were left unchanged, markets were injected with volatility after Draghi stated that there were no discussions of extending the current quantitative easing programme beyond March 2017.

“With Draghi signalling that December will be key to take action, this almost mirrors the views of the Fed and reinforces the theme of central bank caution. Euro sensitivity may intensify in the coming weeks as investors re-evaluate the steps taken by the ECB in pending December meeting.”

Meanwhile, oil prices were a little higher as Russia said it was committed to joining an OPEC-led production cut, with West Texas Intermediate up 0.4% at $50.83 a barrel and Brent crude up 0.6% at $51.68. Market participants will be eyeing Baker Hughes rig count data later in the session for further clues.

In corporate news, German software group SAP was in the black after it lifted the lower end of its 2016 operating profit forecast range and posted a small jump in third-quarter operating profit.

Valeo rallied after raising its profitability target for the year and reporting a 16% rise in third-quarter sales, while Yara International pushed higher after better-than-expected third-quarter numbers.

British American Tobacco advanced after announcing plans to buy the remaining stake in Reynolds American it does not already own.

On the downside, Ericsson retreated after saying it swung to a loss in the third quarter.

Daimler was weaker as it reported an increase in third-quarter operating profit but downgraded its revenue forecast.

InterContinental Hotels slipped as its third-quarter revenue per room rose more slowly than expected.