Europe midday: Traders wary, spotlight on government bond markets
Traders are erring on the side of caution with the spotlight still firmly on government bond markets on both sides of the Pond following recent sharp gains in longer-term yields in the US and Germany.
As of 1205 GMT, the benchmark Stoxx 600 was edging lower by 0.04% or 0.13 points to 398.48, albeit a rise of 0.49% or 113.50 points to 23,272.70, while the German Dax was off by 0.08% or 11.66 points at 13,269.68.
"Equities are mixed mid-morning, with the UK FTSE making fresh highs, US Futures regaining some lost ground and Germany's DAX underwater after encountering resistance. Investors continue to discuss a bond market inflection that could hurt all asset classes, despite Chinese denials that it might be considering buying less US Treasuries," was Accendo Markets Mike van Dulken's take on the situation in markets.
Nevertheless, and hoping to buttress sentiment, overnight Chinese officials went on the record describing the previous days reports that Beijing was looking to slow or stop purchases of US Treasuries as "fake news".
Meanwhile, in economic news on the Continent, industrial production in the euro area jumped by 1.0% month-on-month in November (consensus: 0.6%).
Further south, in Italy, ISTAT reported that retail sales volumes in that country jumped by 1.4% year-on-year in November (consensus: 1.5%).
In parallel, INE announced that Spain's industrial production accelerated from a clip of 0.6% month-on-month for October to 1.0% for November.
On the corporate front, Germany's Bayer announced its intention to sell a further stake in chemicals outfit Covestro with the goal of raising roughly €1.5bn.
Also in the chemicals space, Akzo Nobel disclosed it was holding contacts with between three and four suitors for its specialty chemicals arm.