LONDON: European shares were broadly steady on Thursday with company news and macro events scarce in holiday-thinned trading, while Britain’s FTSE 100 hovered just under a record high.
The pan-European STOXX 600 index was flat in percentage terms by 0952 GMT, while blue chips slipped 0.2 percent.
A rally in commodity prices continued to support the resources-heavy FTSE 100 index, which was also flat. Europe’s basic resources index was the best-performing sector, up 0.6 percent.
Tech stocks extended the previous session’s losses, when chipmakers were hit by concerns over demand for Apple’s iPhone X. Shares in Dialog Semiconductor and AMS both rebounded on Thursday, however.
The tech sector was down 0.4 percent on the day, but has gained more than 20 percent so far this year, the standout performer in Europe.
More broadly, volumes have been muted and liquidity in short supply over the festive season in Europe, with little by way of company news to spur significant moves among single stocks.
Shares in BT fell 2 percent after the telecoms stock traded ex-dividend, while volatile Steinhoff was the top gainer, up 4.6 percent.
Serviced office provider IWG was the biggest faller, down more than 2 percent and giving up some of its 27 percent gains from the previous session when it confirmed a bid approach from a Canadian private equity firm.
Nearing the year-end, European stocks have enjoyed a positive year, with the STOXX 600 up around 8 percent in 2017 as buoyant company earnings and a brighter economic backdrop have fuelled the region’s equities.
Analysts also highlighted broader drivers of equity markets over the year.
“I think predominantly U.S. sentiment and tax reforms have really driven (stock markets), as well as central banks starting to get a lot more hawkish – the ECB joining the U.S. in some quantitative tightening, the opposite of the easing that we’ve had for years and years,” Henry Croft, research analyst at Accendo Markets, said.
Germany’s DAX and Italy’s benchmark are among this year’s winners, up 13.7 percent and 15.4 percent respectively, while Britain’s FTSE has managed to gain 6.7 percent.
Source: Brecorder.com
