Europe midday: Markets mixed amid Sino-US uncertainty, strong Chinese data
European stocks were trading on a mixed note come midday, relinquishing earlier gains as trade war uncertainty vied against strong data out of China and the Eurozone.
At 1158 GMT, the Stoxx 600 was flat at 407.47, as Germany's Dax climbed by 0.1% to 13,242.59 and the French CAC 40 dropped by 0.2% to 5,894.62. Meanwhile, London's FTSE 100 was up by 0.1% at 7,355.58.
Progress in discussions between Washington and Beijing has stumbled after US lawmakers passed a bill supporting demonstrators in Hong Kong, according to a report from Axios that cited a source close to American negotiators.
Meanwhile, China’s Global Times newspaper reported that China is insisting that the US remove existing tariffs, not just planned tariffs, as part of a potential phase one deal.
In more positive news, China's Caixin Markit manufacturing purchasing managers’ index (PMI) rose to 51.8 in November from 51.7 during the previous month, marking its fastest expansion since December 2016 and coming in ahead of expectations for a reading of 51.4.
IG analyst Joshua Mahony said: "Improved Chinese factory data has helped boost sentiment in the absence of any other major drivers today. A rise in the Chinese Caixin manufacturing PMI pushed the survey into the highest level seen in over three years.
"That upside seen throughout Asia has helped boost European stocks which are tentatively in the green ahead of a busy week for markets."
Even so, the better than expected data sent miners and energy stocks higher, with Tullow Oil, Rio Tinto, BHP and Antofagasta among those propelling the Stoxx Basic Resources Index 0.9% higher to 447.01.
Meanwhile, eurozone manufacturing PMI also beat expectations that it would remain flat as it climbed from last month's 46.6 reading to 46.9 in November.
This came as German PMI was 0.3 points higher than anticipated, printing at 44.1, while readings for France, Italy and Switzerland also beat forecasts.
Pantheon Macroeconomics analysts said: "New orders and output are still falling, but Markit now emphasises that the rate of contraction is easing, which is, after all, the first precondition for an eventual rebound. The pace of decline in work backlogs remained severe, though, forcing another monthly decline in employment, for the seventh month in a run.
"Job losses were concentrated in Germany and Austria, while employment growth remained positive in France, the Netherlands and Greece. The reduced pressure on the supply side overall drove input price inflation down further, prompting firms to cut output prices, in part also in response to intensified competitive pressures in a weakening market."
Among individual stocks, German airline Lufthansa was in the green amid rumours that Qatar Airways was considering taking a stake in the company.
Banks were largely on the rise as well, with AIB, Bank of Ireland, Commerzbank and Finecobank all among the top climbers.
Shares of Deutsche Bank edged higher despite a Reuters report in which four sources indicated that the US Department of Justice has intensified its investigation into the German bank's involvement in the €200.0bn Danske Bank money laundering scandal.