Europe open: Stocks little changed but miners, energy issues gain

European stocks wavered in a tight range in early trade, although gains in the oil and gas and basic resources sectors lent some support.

At 0850 GMT, the benchmark Stoxx Europe 600 index was down 0.2%, Germany’s DAX was 0.1% higher and France’s CAC 40 was 0.2% firmer.

At the same time, oil prices rose amid growing expectations that OPEC will agree a production cut at its meeting later this week. West Texas Intermediate was up 1% to $46.15 a barrel and Brent crude was 1.1% higher at $47.35. The Stoxx 600 oil and gas index gained 0.8%.

Metals prices were also in the black, helping to push the Stoxx 600 basic resources index up 1.3%.

Markus Huber, a trader at City of London Markets, said: “European shares are starting the new trading week little changed this morning despite mostly higher markets across Asia and rallying oil prices. An overall lack of major news over the weekend, a rather light data calendar today and traders still waiting for US president elect Trump to announce more new policies and appointments are keeping many traders on the sidelines for now.

“Furthermore trading volume is likely to be negatively impacted and below average for the entire week due to the US celebrating Thanksgiving on Thursday. Overall sentiment remains positive with a year-end rally still on the cards. However at this stage more good economic data will be needed to tempt traders to increase their risk exposure further, especially ahead of the crucial FOMC meeting where the Fed is likely to raise rates and the Italian referendum which could put the government into a deep crisis and therefore possibly destabilise not only Italy but the entire eurozone.”

Politics were in focus in Europe as former French President Nicolas Sarkozy conceded defeat after a vote to choose the centre-right candidate, leaving Francois Fillon and Alain Juppe as contenders.

Meanwhile, in Germany, Chancellor Angela Merkel confirmed that she will run for a fourth term in office.

On the corporate, front German chip designer Aixtron tumbled after a US regulator moved to stop a planned Chinese takeover of the company.

In London, profit warnings weighed on outsourcing group Mitie and plastic and fibre products supplier Essentra.

Meanwhile, GlaxoSmithKline edged lower after saying it has filed a US regulatory submission for a new three-drug inhaler treatment for patients with chronic obstructive pulmonary diseases.