(Bloomberg) -- European equities closed broadly flat as positive earnings reports and optimism about U.S. stimulus offset concerns about rising virus cases.
The Stoxx Europe 600 Index fell just 0.1% after erasing a drop of as much as 1.2%. Shares pared some losses in the final hour after U.S. House Speaker Nancy Pelosi said a stimulus deal is close. Travel, auto and banking stocks outperformed, while tech shares lagged. Schneider Electric SE gained after boosting its 2020 sales outlook, while Neste Oyj advanced on a profit beat.
European equities have erased October's advance as risks mount. The Netherlands joined Germany and at least six other nations in reporting a record rise in coronavirus infections. Across the Atlantic, the top U.S. spy chief accused Iran of making its most direct efforts to interfere in the closing days of the presidential campaign.
“Markets are trading sideways, torn between bad news such as the return of lockdowns, mixed third-quarter earnings and hopes of a ‘last minute' stimulus deal in Washington,” said Oddo BHF strategist Sylvain Goyon.
Among notable movers on a busy earnings day, Pernod Ricard SA advanced 3.9% after saying its fiscal year started well in key markets such as the U.S. and China and that revenue should return to growth in the first six months of 2021. Essity AB tumbled 7.6% after its third-quarter profit missed estimates.
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