Europe midday: Stocks waver as investors wade through earnings

European stocks wavered as a rebound in oil prices was offset by a reluctance to make bold moves ahead of Friday’s non-farm payrolls report, amid thinner volumes due to holidays in Europe.

At midday, the benchmark Stoxx Europe 600 index and Germany’s DAX were both up 0.2%, while France’s CAC 40 was 0.1% lower. Although stock markets were open, workers in France and Germany enjoyed a bank holiday for Ascension Day.

At the same time, oil prices advanced as a wildfire near Canada’s oil-sands district threatened production. Fighting in Libya also helped to lift prices. West Texas Intermediate was up 2.3% to $44.77 a barrel and Brent crude was 1.9% firmer at $45.46.

“Nothing quite puts the buffers on market conviction like the hugely unpredictable US jobs report, due tomorrow. The shadow cast by tomorrow’s volatile payrolls figure was always going to cause hesitancy among traders who know only too well the impact a jobs report can have upon market sentiment and direction,” said Joshua Mahony, market analyst at IG.

In corporate news, Spanish oil major Repsol rallied as its first-quarter adjusted net income beat analysts’ expectations.

BT Group was in the black after reporting a 9% rise in full-year adjusted pre-tax profit and unveiling a £6bn network upgrade programme for its newly-acquired EE business and Openreach infrastructure arm.

RSA Insurance was also higher after reporting a strong first quarter, with operating profit ahead of expectations.

Barclays nudged up after selling down its stake in its African subsidiary to 50.1% after a placing in South Africa.

Energy supplier Centrica was under the cosh after announcing a share placing to fund acquisitions and reduce debt.

Aerospace and defence group Rolls-Royce slid after saying it was on track to deliver expected cost savings, but that these would be significantly weighted towards the second half.

There are no major Eurozone data due, but investors will eye the release of US initial jobless claims at 1330 BST, particularly after Wednesday's ADP employment report missed expectations and ahead of Friday’s all-important non-farm payrolls.