Europe open: Stocks little changed as investors eye PMIs
Updated : 08:54
European stocks were little changed in early trade following downbeat US and Asian sessions as investors continued to digest Thursday’s European Central Bank rate announcement.
At 0850 BST, the benchmark Stoxx Europe 600 index was down 0.1%, France’s CAC 40 was flat and Germany’s DAX was 0.2% lower.
At the same time, oil prices were in the red. West Texas Intermediate was down 1% to $44.30 a barrel while Brent crude was 0.7% lower at $45.88.
On Thursday, the ECB announced that it was leaving its benchmark refinancing rate at 0%, with market participants now expecting further monetary policy stimulus down the line.
“What goes up, must eventually come down, so no surprise that US stocks dipped overnight following an incredible run of seven consecutive record highs,” said Lee Wild, heady of equity strategy at Interactive Investor.
“ECB president Mario Draghi wasn't playing ball yesterday,” he said, adding that the focus now shifts to rate decisions from the Federal Reserve and Japanese central bank next week.
In corporate news, Home Retail Group gained ground after the Competition and Markets Authority cleared Sainsbury’s acquisition of the Argos owner.
Telecoms firm Vodafone was higher after its first-quarter revenue beat analysts’ expectations, while building materials group CRH rallied after lifting its earnings estimate as a result of exceptional trading in the second quarter.
On the downside, Swedish construction company Skanska was sharply lower after its second-quarter earnings fell short of analysts’ expectations.
Sports Direct was under the cosh after a report by the Business, Innovation and Skills committee compared working conditions at the company to a Victorian workhouse and said founder Mike Ashley must be held accountable.
Marks & Spencer was in the red after Barclays downgraded the stock to ‘underweight’ from ‘equalweight’.
On the data calendar, attention will turn to the release of eurozone purchasing managers’ index surveys at 0900 BST.