Europe midday: Markets mixed as US-China progress fails to inspire
European shares were mixed at lunchtime on Friday as optimism over developments in the US-China trade war ebbed and investors looked towards US and Eurozone employment data for direction.
As of 1238 BST, the pan-European Stoxx 600 index edged 0.1% higher to 386.18, with Germany's Dax 0.4% higher at 12,175.02, France's CAC 40 was down 0.1% at 5,590.54 and London's FTSE 100 also down 0.1% at 7,260.60.
Investor optimism seemed to have run out of steam a day after news that negotiators from Washington and Beijing had agreed to meet in October, setting the stage for the next chapter in the trade war saga.
Craig Erlam, market analyst at Oanda, said: "Investors were quite clearly buoyed on Thursday by a phone call between the US and China that appeared to lay the foundations for an early October meeting in Washington. Whether the meeting actually takes place or resolves anything is anyone's guess but investors are clinging to any hope of bringing this trade war to an end."
In the UK, Prime Minister Boris Johnson lost control of the Brexit timetable, along with his parliamentary majority and four separate votes as opposition lawmakers moved to block a no-deal scenario.
David Cheetham, market analyst at XTB, said: "Boris Johnson’s plans for a general election in the middle of October have seemingly been thwarted for the time being and hopes for a resolution to the Brexit stalemate anytime soon are once more starting to look little more than wishful thinking."
"Prolonged periods of uncertainty is typically associated with weakness in a currency, but the pound has responded positively to the latest developments as the fading prospects of a no-deal have attracted buyers back into the market."
On the macro front, data released by EU statistics agency Eurostat showed Eurozone GDP grew by 0.2% in the second quarter, down from 0.4% in the first quarter but in line with expectations, following a slowdown in consumer spending and public consumption growth.
Similarly, employment in the currency bloc rose by 0.2% in the quarter, down from 0.4% growth in the first quarter, while on year growth came in at 1.2% compared to 1.4% in the second quarter of 2018.
Meanwhile, German industrial production fell 0.6% month on month in July against expectations of a 0.4% rise, according to Germany's Federal Office of Statistics.
US non-farm payrolls data was set for release at 1330 BST.
In corporate news, German mobile provider 1+1 Drillisch led the Stoxx 600 higher, rising by more than 10% after the nation's government signed a pact to build 1,400 masts nationwide in order to close up white spots.
Glanbia was among the risers as analysts at Jefferies upgraded the stock from 'hold' to 'buy' as they judged the Irish nutrition business' aims for the full year to be achievable.
FTSE 250-listed G4S surged after Sky News reported that US cash-handling business The Brink's Company could make a £1bn bid for the security services firm's cash solutions arm.
Finally, Sodexo shares slipped as analysts at Barclays warned that the French catering business could find itself threatened by food delivery rivals.