Europe midday: Shares slip into red on lack of impetus; Oil below $80
European shares slipped into the red at midday on Thursday as thin volumes and a dearth of news provided little impetus.
The pan-regional Stoxx 600 index was down 0.05% to 478.36 with all major bourses down after giving up morning gains. In the year to date the Stoxx has gained 12.6%.
Wall Street stocks closed higher on Wednesday as the S&P 500 fell just short of registering a fresh all-time high.
“The US bond and stocks extended their rally on the back of soft US economic data and another strong US bond auction. The US dollar fell sharply against most majors, allowing the euro, sterling, and the yen to extend gains into the year end,” said Swissquote Bank analyst Ipek Ozkardeskaya.
“The rally in the sovereign space looks overdone, hence the rally in stocks and the selloff in US dollar looks overstretched; there is a rising risk of a wild correction when the euphoria comes to an end.”
In equity news Vestas Wind Systems gained again as the Danish wind turbine-maker won received a 1,089 MW order in the US.
Oil prices fell below $80 a barrel as traders eyed a resumption of shipping through the troubled Red Sea region by Denmark's Maersk.
"However, tensions remain elevated, with Middle East leaders warning about the conflict widening, with Israel’s border with Lebanon, a worrisome hotspot, following attacks by Hezbollah. So, crude prices are staying largely elevated, especially with the US economy showing signs of resilience, boosting the outlook for global demand," said Hargreaves Lansdown analyst Susannah Streeter.
Reporting by Frank Prenesti for Sharecast.com