Europe open: Stocks little changed as investors digest PMIs
European stocks were little changed in early trade as investors digested some readings on eurozone services and manufacturing and continued to keep an eye on oil prices.
At 0905 GMT, the benchmark Stoxx Europe 600 index was flat, while Germany’s DAX and France’s CAC 40 were down 0.1%.
In London, the FTSE 100 was up 0.5% as investors awaited the Autumn Statement at 1230 GMT.
Meanwhile, oil prices were a touch lower following a choppy session on Tuesday. West Texas Intermediate and Brent crude were down 0.2% to $47.93 a barrel and $49.01, respectively. Prices had risen sharply in the previous session amid growing expectations that OPEC members and non-OPEC Russia would agree a production cut at next week’s meeting.
However, they came off following a Bloomberg report that Iran, Iraq and Indonesia had reservations regarding a proposed 4.5% production cut by all members except Libya and Nigeria.
In corporate news, Italian insurer Generali was on the back foot after announcing plans to exit less profitable markets and sticking to its 2018 targets.
Safran was also in the red as the French state began selling its shares in the company.
United Utilities rose as it reported a small jump in underlying first-half profit and lifted its interim dividend.
Property investor Hammerson edged higher after agreeing to buy four outlet centres in Europe worth a combined €587m (£502m), in order to expand in the territory.
GlaxoSmithKline gained as it said its mepolizumab medicine met Phase 3 trial endpoints.
Thomas Cook surged. Although the travel company posted a drop in revenue and profit for the year to the end of September, the figures came in ahead of expectations.
On the data front, Markit’s flash eurozone manufacturing and services purchasing managers’ indexes for November both beat estimates.
The flash manufacturing PMI came in at 53.7 versus expectations of 53.3, while the services PMI printed at 54.1, beating estimates of 52.9. This was up from 53.5 in October and 52.8, respectively.
Chris Williamson, chief business economist at IHS Markit, said: “The preliminary PMI results for November indicate the sharpest monthly increase in business activity so far this year, with plenty of signs that growth will continue to accelerate.
“The PMI readings so far for the fourth quarter point to GDP expanding 0.4%, led by a rebound in German growth to 0.5%. France is also seen to be enjoying its best spell since the start of the year, with the PMIs signalling GDP growth of 0.2-0.3% in the fourth quarter.”