By Barbara Kollmeyer
MADRID (MarketWatch) -- European stocks closed thinly mixed
Friday as U.S. economic data inspired some buying, but investors
appeared reluctant to hold on to stocks over the weekend, with next
week's Federal Reserve policy meeting and midterm elections
looming.
The Stoxx Europe 600 index finished up 0.02% at 265.96 on the
last trading day of the month, barely managing a second-straight
win. The index is down 0.9% for the week and up 3.2% for the
month.
Investors digested a string of U.S. economic reports. Stocks got
a boost from the release of U.S. gross domestic product data that
showed a slightly faster pace of growth for the third quarter.
.
Separately, the Chicago purchasing managers index in October
rose to 60.6 from 60.4, stronger than the expected reading of 57.
Investors appeared to shrug off another economic report showing a
decline in U.S. consumer sentiment.
The bigger focus for markets in Europe and elsewhere remains a
potential further round of quantitative easing from the Fed, which
holds a monetary-policy meeting early next week. U.S. midterm
elections are also taking place next week, creating jitters.
Bernard McAlinden, strategist at NCB Stockbrokers, said the
markets have been checking themselves ahead of that meeting. "They
had run ahead on quantitative easing and more recently have been
tempering expectations, and by now they've possibly adjusted," he
said.
In London, the U.K. FTSE 100 index closed off 0.05% at 5,675.16,
with shares of utility companies gaining after Scottish &
Southern Energy PLC said it was raising prices for household gas by
9.4% on Dec. 1. Its shares rose 3.4%.
The news triggered gains across the utility sector, with
Centrica PLC climbing 3.2%, Severn Trent PLC adding 2% and United
Utilities Group rising 1.2%.
Shares of British Airways dropped 3.6%. The firm said it
returned to a six-month profit, but it was cautious on the outlook
for its business.
"While positive, the economic environment continues to be
subject to uncertainty, to which the increase in APD [air passenger
duty] is unhelpful. We continue to focus on managing our costs,"
the airline said.
Miners, which helped the market break a two-session losing
streak Thursday, fell on Friday. Shares of Xstrata PLC declined
3.2%, and Rio Tinto PLC (R) lost 1.7%.
Utility shares also rose in France, but the CAC 40 index slipped
to close weaker, down 0.04% to 3,833.50. Shares of GDF Suez SA rose
1.6%, and Electricite de France SA gained 1%.
Shares of French energy giant Total SA (TOT) fell just slightly,
paring earlier losses as the firm reported a sharp rise in
quarterly profit, buoyed by higher oil and gas prices.
Germany's DAX 30 index closed up 0.1% to 6,601.37. Shares of BMW
AG added 3.3% after being upgraded to buy from neutral by Goldman
Sachs, which said it continues to see "significant value" in the
auto sector.
The investment bank cut PSA Peugeot-Citroen SA to sell from
neutral, saying the company faces structural challenges. Shares
fell 0.4% in Paris.
Shares of Daimler AG rose 1%, recovering from an earlier fall
after the car maker was downgraded to hold from buy at Societe
Generale.
German retailer Metro AG , led decliners with shares falling
1.6% after HSBC cut it to neutral from overweight, saying the
firm's valuation is now in line with its peers.
In Sweden, shares of tool and machinery maker Sandvik AB fell
4.4% after the company's third-quarter profit missed analyst
forecasts.
On the economic front in Germany, data showed retail sales
dropped 2.3% in September from the prior month.