Retail stocks were the worst performers in early deals. European Central Bank President Mario Draghi says the bank needs to be patient. Germany drags on with coalition talks as disagreements over climate, migration and finances remain between the three parties.
The pan-European Stoxx 600 was 0.04 percent higher with sectors moving in different directions. Retail stocks were the worst performers in early deals, down by 0.6 percent, after several rating updates. In particular, H&M fell nearly 3 percent after a rating downgrade by SEB to a "sell" from a "hold". And Inditex dropped 2.2 percent after Berenberg cut the stock to "sell" from "hold". Analysts have raised concerns over the increasing competition from online shopping.
On the other hand, financial services were among the best performers, boosted by rating upgrades. The dutch investment firm Exor rose about 2 percent after a target price increase, becoming one of the best-performing stocks across the European benchmark.
Looking at individual stocks, Sky hit the top of the Stoxx 600, up by 3.3 percent. The stock was boosted by the news that Comcast, parent company of CNBC, and Verizon have said they are interested in buying certain parts of Twenty-First Century Fox.
Shares of construction and support services provider Carillion sank by 59 percent after it issued its third profit warning of the year.
Meanwhile, shares of Elior fell more than 15 percent after a profit warning. The stock was at the bottom of the benchmark.
In other corporate news, Nationwide Building Society posted a 10 percent drop in profits in the first half of its financial year.
In Italy, Alitalia said Thursday that it has met with members of Lufthansa. According to Reuters, Alitalia said that media reports over a deal with Lufthansa were "groundless."
Draghi says the ECB needs to be patient
In terms of data, there will be euro zone current account numbers out at 9:00 a.m. London time.
Market players were also digesting remarks by European Central Bank President Mario Draghi. He told an audience in Frankfurt that the ECB needs to patient when normalizing monetary policy. This is because despite the improved economic growth in the 19-member area, inflation remains subdued.
The pan-European Stoxx 600 was 0.04 percent higher with sectors moving in different directions. Retail stocks were the worst performers in early deals, down by 0.6 percent, after several rating updates. In particular, H&M fell nearly 3 percent after a rating downgrade by SEB to a "sell" from a "hold". And Inditex dropped 2.2 percent after Berenberg cut the stock to "sell" from "hold". Analysts have raised concerns over the increasing competition from online shopping.
On the other hand, financial services were among the best performers, boosted by rating upgrades. The dutch investment firm Exor rose about 2 percent after a target price increase, becoming one of the best-performing stocks across the European benchmark.
Looking at individual stocks, Sky hit the top of the Stoxx 600, up by 3.3 percent. The stock was boosted by the news that Comcast, parent company of CNBC, and Verizon have said they are interested in buying certain parts of Twenty-First Century Fox.
Shares of construction and support services provider Carillion sank by 59 percent after it issued its third profit warning of the year.
Meanwhile, shares of Elior fell more than 15 percent after a profit warning. The stock was at the bottom of the benchmark.
In other corporate news, Nationwide Building Society posted a 10 percent drop in profits in the first half of its financial year.
In Italy, Alitalia said Thursday that it has met with members of Lufthansa. According to Reuters, Alitalia said that media reports over a deal with Lufthansa were "groundless."
Draghi says the ECB needs to be patient
In terms of data, there will be euro zone current account numbers out at 9:00 a.m. London time.
Market players were also digesting remarks by European Central Bank President Mario Draghi. He told an audience in Frankfurt that the ECB needs to patient when normalizing monetary policy. This is because despite the improved economic growth in the 19-member area, inflation remains subdued.
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