By Simon Kennedy
LONDON (MarketWatch) -- European stocks recovered from early
losses to trade broadly flat Wednesday, with shares of Peugeot and
BASF both rising after the companies lifted their outlooks.
The Stoxx Europe 600 index edged up less than 0.1% to
265.41.
The benchmark index began to recover from early losses after the
release of minutes from the Bank of England's October rate-setting
meeting. The minutes showed that some policy makers saw an
increasing likelihood that further monetary easing will be
needed.
European markets also got support from a stronger start to
trading on Wall Street, where Boeing Co. (BA) was among early
gainers after hiking its outlook.
Among the main European indexes, the French CAC 40 index climbed
0.3% to 3,817.19, while the U.K.'s FTSE 100 fell 0.1% to 5,696.16
and the German DAX 30 index rose 0.2% to 6,500.55.
"After the upward run we had over the last month, there are
always people ready to buy the dip," said Philippe Gijsels, head of
research at BNP Paribas Fortis Global Markets.
"The big test for this market will be when we go down again.
Buying the dip has been profitable so far over September and
October; if it stops working, we may be developing another trend,"
he said.
In Paris, shares of PSA Peugeot Citroen rose 1.7%. The French
car maker said revenue grew 10% in the third quarter as management
lifted its earnings forecast for the year.
And shares of BASF moved 1.8% higher in Frankfurt, gaining after
the German chemicals giant raised its outlook for the year and
reported a 23% jump in third-quarter sales.
Among notable decliners, Swedish defense and aerospace group
Saab saw its shares drop 6.4%.
The company cut its outlook, noting that restructuring costs in
the fourth quarter means that operating profit for the year will
now be lower than it was in 2009. Saab also said it still expects
sales for the year to be flat.
But TomTom , the Dutch maker of equipment used in
satellite-navigation systems, reversed early losses to trade up
1.4% in Amsterdam.
The company said profit in the latest quarter dropped by more
than a third as margin narrowed, hurt by the weak dollar. However
TomTom also said it still expects to achieve its financial targets
for the year.
Novo Nordisk (NVO) jumped more than 9% in Copenhagen. Analysts
said the stock gained on a U.S. regulatory decision to demand
further studies of a drug seen as a potential rival to Victoza,
Novo Nordisk's diabetes drug.
Mining stocks were also relatively strong, with BHP Billiton
(BHP) climbing 1% after announcing a rise in iron-ore production
and following a report that its $39 billion bid for Potash Corp. of
Saskatchewan (POT) is likely to be rejected by the Saskatchewan
government.
Also in London, Rio Tinto (RIO) rose 1.5% after saying it would
invest $3.1 billion to expand iron-ore production in Australia.
Among smaller companies, shares of Hansen Transmissions
International , which makes gearboxes for wind turbines, slumped
more than 16%. The company slashed its revenue forecast for the
year as customers delayed orders.
Turbine manufacturer Vestas Wind Systems dropped 3.8% in
Copenhagen.