Frankfurt - European stocks were little changed as investors assessed gains that sent the Stoxx Europe 600 Index to a three-month high, while declines in banks offset advances in miners.
Barclays led lenders lower, falling 2.2% after Morgan Stanley cut its rating to equal weight, citing risks to consensus earnings estimates.
Miners increased the most on the equity benchmark, with Rio Tinto Group and BHP Billiton rising at least 1%, while Glencore added 2.6%. ABN Amro NV climbed 3.3% on its first day of trading in Amsterdam after an initial public offering.
“We have lots of mixed signals and it looks like we could be treading water for some time,” said Benedict Goette, a partner of asset-management firm Crossbow Partners in Zurich. “I suspect that year-end strength might start a bit later this year than usual.”
The Stoxx 600 rose 0.1% to 381.5 at 13:58. Shares have rebounded 12% since a September low amid optimism that the European Central Bank (ECB) will add to stimulus. President Mario Draghi today reinforced this view, saying the ECB will do what’s necessary to raise inflation toward its target range quickly.
European stocks are heading for a 3.2% weekly advance, after Federal Reserve minutes this week indicated the US economy can withstand higher borrowing costs, while officials reiterated that the pace of increases will be gradual.
Among other shares moving on corporate news, Imperial Tobacco rose 2.2% on speculation that British American Tobacco is arranging financing to make a bid. K+S AG fell 1.9% after Credit Suisse downgraded the German potash producer to underperform, similar to sell, from neutral, after cutting its price estimates for the commodity.