Europe open: Stocks little changed as oil retreats; Burberry and Unilever in focus
Updated : 09:10
European stocks were little changed in early trade amid lower oil prices, with investors pausing for breath following strong gains in the previous session as they sifted through some disappointing corporate news.
At 0900 BST, the benchmark Stoxx 600 index and France’s CAC 40 were both down 0.1%, while Germany’s DAX was up 0.1%.
At the same time, oil prices were weaker as the Organization of the Petroleum Exporting Countries cautioned in its monthly report on Wednesday that demand growth could slow, ahead of a meeting of oil producers in Doha this weekend.
West Texas Intermediate was down 1.9% to $40.97 a barrel and Brent crude was 1.6% lower at $43.47.
“European markets have paused for breath this morning following the 2016 FTSE high of yesterday as the latest dip in the oil price counters positive sessions in the US and Asia overnight,” said Andy McLevey, head of dealing at stockbroker Interactive Investor.
“Better than expected earnings from JP Morgan Chase boosted financial stocks and investors will be hoping the positive momentum can be maintained as the earnings season continues.”
On the corporate front, Burberry was under the cosh after the fashion house warned that profits in 2017 were likely to be around the bottom of the range of analysts’ forecasts.
Consumer goods group Unilever was also in the red after reporting growth in underlying sales and volume, though the top line declined in its first quarter update.
French retailer Groupe Casino nudged lower after reporting an 11% drop in first-quarter revenue.
On the upside, Swiss food company Nestle pushed up after its first-quarter sales beat analysts’ estimates.
In London, shares in Peppa Pig owner Entertainment One surged 9% following reports it was in talks with ITV over a possible takeover, although the company said early on Thursday that it had not received any approaches.
In the UK, eyes will be on the Bank of England rate announcement at 1200 BST, with rates and the asset purchase programme expected to remain unchanged.