PRAG (dpa-AFX) - Despite a positive start, European stock markets ended on a mixed note on Thursday, with investors making cautious moves amid concerns about U.S.-China trade disputes.
The markets shrugged off weak Eurozone economic data, but failed to make any significant progress as the mood turned cautious as the session progressed. Investors were also tracking news on Brexit and the partial U.S. government shutdown for direction.
The pan European Stoxx 600 ended up 0.25%. Among major markets in the region, Germany and France ended notably higher, with their benchmarks DAX and CAC 40 gaining 0.53% and 0.65%, respectively. The U.K.'s FTSE 100 ended down 0.35%, while Switzerland's SMI declined by 0.22%.
Among other markets in Europe, Turkey rose sharply, with its benchmark BIST 100 rising as much as 1.63%. Sweden, Italy, Iceland and Finland closed on a firm note. Spain, Portugal and Greece edged up marginally.
Russia, Romania, Norway, Ireland and Czech Republic ended with moderate losses. Poland ended flat.
Technology stocks, riding on good results from STMicroelectronics, were among the notable gainers in European markets today.
In the U.K. market, Vodafone Group and Reckitt Benckiser declined by 3.5% and 3.3%, respectively. British American Tobacco, EasyJet and Rentokil Initial also ended notably lower.
In Germany, Infineon Technologies rallied 4.75%. Fresenius gained 4.5%, Wirecard surged up 3.5%, RWE gained 3.4% and Continental advanced by 3.2%.
Among French stocks, STMicroelectronics jumped 10.25% on strong results. Valeo surged up 5.5% and Atos gained 5.2%. Bouygues, Peugeot, Airbus, Schneider Electric and Cap Gemini gained 1.5 - 3.2%.
Centrica, St James's Place, Evraz, Ashtead Group and 3I Group gained 1.4 to 2.5%.
Comments from U.S. Commerce Secretary Wilbur Ross that U.S. is 'miles and miles' from a trade deal with China rendered the mood cautious during the latter part of the trading session. 'Frankly, that shouldn't be too surprising,' Ross said in an interview on CNBC's 'Squawk Box,' noting the U.S. and China have 'lots and lots of issues.'
The comments from Ross come ahead of Chinese Vice Premier Liu He's trip to Washington next week for the next round of trade negotiations.
The European Central Bank, as expected, left its policy rates and forward guidance unchanged today. The main refi rate is currently at a record low 0% and the deposit rate at -0.40%. The marginal lending facility rate is at 0.25%.
ECB President Mario Draghi said in his post meeting press conference that risks to the euro area growth are now tilted to the downside, thanks to persistent uncertainties such as protectionism.
'The risks surrounding the euro area growth outlook have moved to the downside on account of the persistence of uncertainties related to geopolitical factors and the threat of protectionism, vulnerabilities in emerging markets and financial market volatility,' Draghi said.
Draghi blamed a slowdown in external demand, due to both country and sector-specific factors, for the weaker-than-expected incoming data.
'While the impact of some of these factors is expected to fade, the near-term growth momentum is likely to be weaker than previously anticipated,' he said.
In economic releases from Eurozone, data from IHS Markit showed that Eurozone private sector expanded at the weakest pace in five-and-a-half years at the start of the year, led by weaker pace of growth in both manufacturing and services.
The flash Composite PMI dropped to 66-month low of 50.7 from 51.1 in December. Economists had forecast a score of 51.4. The flash manufacturing PMI fell to a 50-month low of 50.5 while the services PMI eased to a 65-month low of 50.8.
Meanwhile, another data from IHS Markit showed that the flash Composite Purchasing Managers' Index fell to a 50-month low of 47.9 in January, from 48.7 in December. Economists had forecast a score of 51.
The flash services PMI tumbled to a 59-month low of 47.5 from 49.0 in December. Economists were looking for a score of 50.5.
Nonetheless, the flash manufacturing PMI rose to a 3-month high of 51.2 from 49.7 in the previous month. Economists had expected a reading of 50.
A survey report from INSEE said France's manufacturing business confidence was unchanged with a reading of 103 in January at its lowest level in over two years.
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