Europe midday: Shares flat on EZ PMIs as traders wait on US payroll data
European shares were flat midday on Friday as a key survey showed business sentiment waning on fears of the Omicron Covid variant.
The pan-European Stoxx 600 index was just above the flatline having made gains in the morning session at the end of a volatile week as South Africa reported a spike in cases caused by the new strain of coronavirus.
Traders were also putting their feet up ahead of US non-farm payrolls data later in the day.
“A surge in Gauteng hospitalisations brings major risks for markets, but bulls remain poised to jump back in should vaccines avoid extreme outcomes. Today’s US jobs report looks likely to bring another reminder of economic strength, with record vacancies highlighting a reason for optimism either way,” said IG analyst Joshua Mahony.
Oil stocks gained in line with crude prices after OPEC+ said it would review supply additions ahead of its next meeting if Omicron hits demand.
Eurozone business activity picked up the pace in November but the acceleration could be short lived as the Omicron coronavirus variant and intensifying cost pressures knocked sentiment, according to a survey released on Friday.
The IHS Markit eurozone composite output Index rose to 55.4 from 54.2 in October, but down from a “flash” estimate of 55.8.
In equity news, Shares in Swedish Orphan Biovitrum plunged 23% after US private equity firm Advent International and Singapore's sovereign wealth fund said they were withdrawing their $8bn bid for the drugmaker.
BP rallied after an upgrade to ‘buy’ from ‘hold’ at Deutsche Bank.
Dassault Aviation shares rose to the top of the Stoxx after the United Arab Emirates agreed to buy 80 French-made Rafale fighter jets - the biggest international order ever made for the warplanes - and 12 Caracal military transport helicopters.