LONDON - European equities were little changed in choppy trade, with weaker retail shares after disappointing figures from Hennes & Mauritz offsetting gains in energy stocks, which tracked firmer oils.
Swedish fashion group Hennes & Mauritz, the world's third-largest clothing retailer, fell 5.8 per cent after missing third-quarter profit forecasts due to weaker-than-expected gross margins. The STOXX Europe 600 retail index fell one per cent to feature among the top decliners.
But energy shares gained ground as crude oil prices rose on a weaker dollar, strong Chinese manufacturing data, and a fall in US crude and winter fuel stocks. Tullow Oil, Total and StatoilHydro rose 0.5 to 1.3 per cent.
By 1220 GMT, the FTSEurofirst 300 index of top European shares was flat at 1,070.58 points after trading in a wide range of 1,064.30-1,078.97. It fell 0.3 per cent on Tuesday after a report showed that US consumer confidence fell to its lowest level since February.
"The incoming economic numbers are mixed, with some surprising on the positive side and some on the negative side. That keeps investors guessing how significant the economic growth slowdown will be," UniCredit equity strategist Tammo Greetfeld said.
"On Ireland, everything depends on what the Irish government says this week regarding the procedures and estimated total costs to find a solution for Anglo Irish Bank. The markets will remain in their sideways move and investors should focus on defensives such as telecoms, utilities and healthcare."
Ireland's borrowing costs hit a record high on Tuesday after two credit rating agencies warned its debt was at risk of further downgrades, compounding political jitters over a budget that could break a shaky government.
The VDAX-NEW volatility index, one of Europe's main barometers of investor anxiety, rose 0.8 per cent but remained in a tight range where it has oscillated for nearly a month. The chart suggested an imminent spike in volatility that could mean a stock market pull-back.
The index's chart shows the Bollinger Bands -- which use standard deviations away from a simple moving average -- sharply narrowing over the past two weeks, which usually warns of a sharp move in the short term.
"This is not reassuring. We're in the last few days of the quarter, and we can't break out of the range on the upside. It's like if people are bracing for the bad news that will trigger a pull-back," Global Equities head of quantitative sales trading David Thebault said.
