European shares end flat but Brexit ruling weighs down FTSE

European shares ended flat on Thursday, giving up early gains as a London court ruling complicated the Brexit process, boosting the pound and sending British blue chips to a five-week low.

The pan-European STOXX 600 ended flat after eight sessions of losses – its longest losing streak in more than two years – while the UK’s FTSE fell 0.8 per cent.

Britain's top share index was weighed down by internationally exposed companies including Diageo, which had benefited from weakness in sterling since Britain's vote to quit the European Union in June.

But the pound soared to near four-week highs after England's high court ruled that the government needed parliamentary approval to trigger the Brexit process, and the Bank of England shifted away from cutting rates further.

Dublin

The Iseq index ended marginally up at 5,923. Hotel group Dalata rose 3 per cent to €4.12 following news that its leasehold acquisition of the Burlington hotel in Dublin had been given clearance by the Competition and Consumer Protection Commission.

After climbing 5 per cent on Wednesday on foot of better-than-anticipated results, food group Glanbia rose a further 1.7 per cent to €15.26. Rival Kerry, which was also buoyed by a positive trading update on Wednesday, fell 1.8 per cent to €67.59.

Packaging group Smurfit Kappa was another to maintain the upward momentum, rising 1.3 per cent to €20.92 following a strong rise on Wednesday.

Paddy Power Betfair rose nearly 1 per cent ahead of a trading statement on Friday. Bank of Ireland put in another positive session, closing up at 19.7 cent while rival Permanent TSB rose by 1 per cent to €2.42. Swiss Irish food group Aryzta, meanwhile, rose marginally to finish at €39.70.

London

The rebound from the pound dealt a blow to the FTSE 100 Index, which slumped back from morning gains to close down 54.91 points at 6,790.51. However, some stocks were enjoying uplift from sterling's rise, with EasyJet and British Airways-owner IAG climbing 29.5p to 997.5p and 9.4p to 450.8p respectively.

Supermarket chain Morrisons was pushed higher after it totted up a full year of sales growth, with its "biggest ever" Halloween helping cement its turnaround. The grocery giant said like-for-like sales in the third quarter rose 1.6 per cent , with Halloween turnover up about 20 per cent with shares rose 2.1p to 223.4p.

Away from the top tier, Tate & Lyle was among the biggest risers on the FTSE 250 after the food ingredients maker enjoyed a sterling sweetener after the Brexit-hit pound boosted profits by £15 million.

Europe

Credit Suisse was a big loser in Europe, down 7.1 per cent as investors cashed in on a recent rise in the price of the stock after third-quarter profit failed to match some expectations following strong results from US rivals.

"It looks like some expectation was higher after the US banks reported," Vontobel analyst Andreas Venditti, who has a "hold" rating on the stock, said.

Europe's banking sector still managed to rise 1 per cent, lifted by a well-received earning update from Société Générale. The French bank gained 5.5 per cent. ING rose 2.3 per cent after the largest Dutch bank reported a better-than-expected 22 jump in its underlying net result on continued loan growth and higher commission and fee income.

Genmab jumped 11.4 per cent in heavy volumes after the Danish biotech company's third-quarter operating profit surged 31 per cent. It also raised its guidance due to increased royalty and milestone income related to sales of multiple myeloma drug Darzalex.

New York

US stocks steadied in late morning trading on Thursday, with the S&P 500 on track to break its longest losing streak in five years, although a fall in Facebook’s shares capped gains.

Facebook fell as much as 5.5 per cent to a more than three-month low of $120.12 after the social media giant warned that revenue growth would slow this quarter. The stock was the biggest drag on the S&P and the Nasdaq.

Tension in markets, rattled by US election nerves, also eased after a UK court ruling that parliament must approve a government decision to trigger Brexit.

Eight of the 11 major S&P 500 sectors were higher, with the telecommunications index's 0.86 per cent rise leading the advancers. Twenty-First Century Fox rose 6.7 per cent to $27.65 after it reported first-quarter profit that topped Wall Street expectations. The stock was among those that powered the S&P and the Nasdaq.

Fitbit sank as much as 30.3 percent to a record low of $8.93 after the wearable fitness device maker's revenue forecast for the key holiday shopping quarter fell well below estimates. American International Group fell 4.6 per cent to $57.74 after the insurer's quarterly profit missed expectations.

– (Additional reporting by Reuters/Bloomberg)