Europe midday: Stocks little changed amid sharp moves in bond markets
Stocks are holding higher even as investors keep a close eye on government bond markets following a spate of sharp selling the day before which market commentary linked to expectations for faster rate hikes in the States, especially following recent sharp gains in commodity prices.
"Despite background noise that continues to reverberate with concerns about trade, markets in Europe look set to close higher for the fourth week in succession, despite a mixed session yesterday, helped at the start of the week by relief that last weekend’s cruise missile strikes didn't prompt an escalation in tensions between Russia and the US," said Michael Hewson, chief market analyst at CMC Markets UK.
"[...] This week's rise in commodity prices has seen the Reuters CRB index push to its highest levels since the middle of 2015. We’ve also seen a rise in bond yields as investors wake up to the prospect that these gains might well see inflationary pressures start to reassert themselves further down the line," he said.
Against that backdrop, as of 1204 BST the benchmark Stoxx 600 was edging higher by 0.06% or 0.23 points to 382.18, alongside a move higher on the FTSE Mibtel of 0.51% or 122.71 points, although the Dax was down by 0.11% to 13.45 points.
In parallel, the yield on the benchmark 10-year German bund was dipping by one basis point at 0.59%, but after a seven basis point jump on Thursday.
For later in the day on the economic front, the Belgian central bank was due to publish its consumer confidence index for the month of April, at 1300 BST, followed by an equivalent gauge for the euro area one hour later.
On the corporate side of things, Vinci was higher after the French construction group announced a new contract for two roads in Cameroon for a total of €214m.
Lufthansa shares on the other hand were lower despite ratings agency Standard&Poor's having revised its outlook on the carrier's long-term debt lower, from 'positive' to 'stable'.