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European stocks fluctuate as earnings war with oil-share gains

London - European stocks fluctuated as investors weighed worse-than-estimated earnings from companies Roche Holding AG and Hennes & Mauritz AB, while energy shares gained.

Roche slid 4.6%, leading drug makers to the biggest decline among Stoxx Europe 600 Index industry groups. H&M dropped 3.8%. While stocks have recently been moving in virtual lockstep with crude prices, moves in Europe’s benchmark were more restrained today, despite Seadrill and Tullow Oil surging 8% or more.

The Stoxx 600 dropped less than 0.1% at 9:56 a.m. in London, after fluctuating between gains and losses at least six times, rising as much as 0.3%. The Federal Reserve indicated no discernible shift in its stance at yesterday’s meeting, following recent market turmoil.

“Markets are not getting much of a steer from central banks largely on hold, and neither are they getting a sense of direction from earnings,” said Michael Ingram, a market strategist at BGC Partners in London. “For investors used to playing the momentum game, January has been very disorienting. The market is simply lost. ”

Worries about global growth amid a rout in oil prices and a slowdown in China have weighed on stocks in 2016, sending the Stoxx 600 down 7%. That puts it on course for the worst January since 2008. Still, speculation of more stimulus from the European Central Bank and better-than-forecast earnings from some companies have helped staunch losses after the benchmark sank to its lowest level since October 2014 last week.

Among other stocks moving on corporate results, First Group slid 6.7% after lowering its forecast for full-year operating profit. Tele2 AB slumped 9.3% after the Swedish wireless carrier predicted earnings that missed analysts’ estimates.

Anglo American added 4% after saying copper output rose 23% in the fourth quarter. Electrolux AB climbed 2.7% after reporting a smaller loss than estimated. Repsol SA gained 4.8% after saying annual net income will surpass the higher end of its previous projections.

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