European stock markets struggled for direction on Thursday, as earnings from heavyweight companies added pressure, while growth data from China sent mining stocks higher.
The Stoxx Europe 600 index traded 0.1% higher at 275.97, but swung between small gains and losses.
Swiss food major Nestle SA dropped 1.9%, after nine-month results showed a slowdown in growth in emerging markets. See: Nestlé sales beat expectations
Dutch painting firm Akzo Nobel NV lost 4.4%, as it swung to a loss in the third quarter?due to a 2.5 billion euro ($3.28 billion) impairment on its decorative paints business. See: Akzo Nobel swings to net loss on impairment.
Later in the day, attention turns to European policy makers, when the European Council meets for a two-day meeting in Brussels, with analysts expecting little progress on how to solve the region’s debt woes.
“Of the current hot topics it is only the time path towards a genuine banking union that is on the agenda,” analysts at Danske Bank said in a note.
“A Spanish request for a precautionary program and a two-year extension of the Greek program will be discussed on the sidelines, but we do not expect any clarification on the ‘hot topics’ before November,” they added.
Chinese data
Investors also digested data from China, where third-quarter gross domestic product figures showed the economy grew by 7.4%, as expected, down from 7.6% in the second quarter. However, September data pointed to a pickup in economic growth, suggesting that the slowdown in third quarter could mark the low point in activity. See: China’s GDP growth slows but may mark bottom
Mining firms moved higher after the data, with Rio Tinto PLC up 1.4%, BHP Billiton PLC rising 1.4% and Anglo American PLC gaining 1.2%.
The FTSE 100 index gained 0.2% to 5,922.86, although with food and drinks makers on the decline.
SABMiller PLC gave up 0.9%, after it flagged slowing demand in Latin America, its key region, when reporting half-year earnings. See: SABMiller sales up, but Latin America demand slows
Unilever PLC tripped 1.4%.
Royal Dutch Shell PLC dropped 0.9%, after Goldman Sachs lowered its view on the European oil sector to cautious from attractive and added the U.K. oil major to its sell list.
The bank further reiterated its sell rating on French oil group Total SA , its shares declining 0.5%. Oil prices hovered around the flat line. See: Oil holds steady as dollar inches higher
Also in France, Pernod Ricard SA gave up 3.6%. Peer firm Rémy Cointreau SA slumped 6% outside the main index in Paris, after the liquor producer reported that second quarter organic revenue growth slowed to 5.3% from a strong first quarter. Growth in sales of Remy Martin cognac slowed in Europe.
The CAC 40 index was off 0.1% to 3,524.77.
In Spain, the yield on 10-year government bonds dropped 9 basis points to 5.37%, according to electronic trading platform Tradeweb.
The Treasury sold €4.6 billion in a debt sale, topping the target range at €4.5 billion, while borrowing costs dropped across all maturities on sale. See: Spain tops target to sell 4.6 bln euros of bonds
The IBEX 35 index , however, lost 0.5% to 8,087.80, with Banco Santander SA down 1.5%.
Among German shares, ThyssenKrupp AG gained 0.8% after Exane BNP Paribas lifted the stock to neutral from underperform.
The DAX 30 index was up 0.3% at 7,416.83.
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