European Markets Finished Mixed In Choppy Trade

(RTTNews) - The European markets ended Friday's choppy trading session with mixed results. The markets fluctuated between small gains and losses over the course of the session, a day after ECB President Mario Draghi left the door open to more stimulus.

The Euro weakened against the US dollar after Draghi's dovish comments Thursday. The strength of the US dollar had a negative impact on commodity prices, which weighed on resource stocks. Corporate financial results proved a mixed bag at the end of the week, both in Europe and in the United States. Economic data was on the light side Friday, with no data from the United States. Eurozone consumer confidence showed continued improvement in October and U.K. public sector net borrowing unexpectedly increased.

Longer-term expectations for euro area inflation were broadly unchanged, while growth and unemployment projections were lowered, results of a survey by the European Central Bank showed Friday.

Average longer-term inflation expectations for 2021 stand at 1.8 percent, unchanged with respect to the previous survey, the quarterly ECB Survey of Professional Forecasters revealed.

Inflation expectations for this year was pegged at 0.2 percent versus 0.3 percent earlier, while the projection for next year was kept at 1.2 percent. Average inflation was seen at 1.4 percent in 2018 versus 1.5 percent seen earlier.

The pan-European Stoxx Europe 600 index weakened by 0.00 percent. The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.03 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.07 percent.

The DAX of Germany climbed 0.09 percent, but the CAC 40 of France fell 0.09 percent. The FTSE 100 of the U.K. declined 0.09 percent and the SMI of Switzerland finished lower by 0.43 percent.

In Frankfurt, SAP jumped 4.31 percent. The software developer raised its full-year guidance despite reporting lower profit in its third quarter due to higher stock-based compensation expenses.

Daimler dropped 2.06 percent after the luxury car maker lowered its forecasts for 2016.

In Paris, Valeo leaped 2.96 percent. The automotive supplier raised its full-year 2016 operating margin target to about 8 percent after reporting 16 percent growth in its sales for the third quarter.

Essilor sank 5.58 percent after its revenue declined by 2.3 percent in the nine months to September 30 due to currency fluctuations.

In London, British American Tobacco, the maker of Dunhill cigarettes, decreased 2.85 percent after it offered to pay $47bn (£38bn) to take full control of Reynolds American Inc.

Royal Mail lost 1.25 percent on a Bloomberg report that it is seeking buyers for its private equity portfolio.

InterContinental Hotels Group fell 2.02 percent after it reported that its third-quarter Global comparable RevPAR increased 1.3 percent at constant exchange rates, with rate up 1.0 percent and occupancy up 0.3 percent pts.

Burberry rose 3.10 percent on reports of a possible combination with US company Coach.

Ericsson dropped 4.89 percent in Stockholm. The world's biggest maker of mobile network equipment has reported its first loss in almost four years, hurt by weaker demand for mobile broadband.

Fertilizer firm Yara climbed 3.91 percent in Oslo after its third-quarter core profit and revenues beat estimates.

Eurozone consumer confidence improved for a second straight month in October to its highest level in three months, preliminary data from European Commission showed Friday. The flash consumer confidence index climbed to -8 from -8.2 in September. The latest reading was the strongest since July, when the score was -7.9.

Europe's commercial vehicle demand increased for the 21st consecutive month in September, the European Automobile Manufacturers Association reported Friday. Commercial vehicle sales increased 6 percent annually to 220,781 units in September. Nonetheless, the pace of growth eased markedly from August's 31.8 percent increase.

U.K. public sector net borrowing, excluding public sector banks, increased unexpectedly in September, figures from the Office for National Statistics showed Friday. The budget deficit rose by GBP 1.3 billion from prior year to GBP 10.6 billion in September. Meanwhile, it was expected to narrow to GBP 8.5 billion.

British households perceived that the value of their home increased in October, though at a slower rate than in the previous month, survey figures from IHS Markit and Knight Frank showed Friday. The Knight Frank/Markit House Price Sentiment Index, or HPSI, dropped to 55.7 in October from 56.9 in September.