Europe midday: Stocks rally on strong insurer earnings

European stocks rallied to hover just below record highs at midday on Thursday as strong corporate news from insurers offset a fall in stocks going ex-dividend.

The pan-European Stoxx 600 index was up 0.14%, with most regional bourses higher. The UK's FTSE 100 was down as heavyweight stocks went ex-dividend, dragging on sentiment.

Investors were also digesting UK data released earlier by the Office for National Statistics showing the economy grew by 4.8% between April and June as lockdown restrictions eased, in line with expectations.

This was close to the 5% growth predicted by the Bank of England last week and left the economy 4.4% below its pre-pandemic peak.

In equity news, Dutch insurer Aegon topped the benchmark index with a rise of 8% on posting a much better than expected second-quarter earnings.

UK peer Aviva rose 4.35% after the company said it would return at least £4bn to shareholders. Zurich Insurance Group gained after reporting a 60% jump in first-half business operating profit.

Holiday company TUI rallied as it revealed a sharp jump in summer holiday bookings.

Shares in Cineworld rose 4.8% after it said it was considering a listing of itself or a partial listing of its movie chain Regal on Wall Street and reported an encouraging start to post-Covid-lockdown trading.

Stock Spirits Group jumped 44% as funds affiliated with private-equity firm CVC agreed to take over the London-listed vodka maker in a deal valuing it at £767m.

Rio Tinto, Barclays, Shell and Next were all lower as they traded without entitlement to the dividend. Rio was particularly weak as it went ex-interim and special dividend.

Shares in Deliveroo rose 5.2% after the boss of Delivery Hero said the German takeaway food delivery company has no interest in buying its London-listed rival. Delivery Hero shares fell 4.76% in response.