European shares held steady on Thursday, as strong earnings from insurers provided ballast and hopes that the European Central Bank could show readiness to buy bonds offset worries about slow economic growth in the region.
The STOXX Europe 600 Insurance index gained 1.6 percent with Swiss Re a stand-out.
Shares in the world’s second-biggest reinsurer rose 7.3 percent after its second-quarter profit beat estimates.
Forecast beating results from both ING and AXA, which gained 5.2 percent and 3.1 percent also helped.
By 0950 GMT, the pan-European FTSEurofirst 300 index of top shares was flat at 1,025.00 points after hitting an 11-month closing low in the previous session.
The index was also in “oversold territory”, with its 14-day relative strength index having hit 26.7 on Wednesday — 30 or below is considered oversold.
The ECB is due to hold a news conference later on Thursday after its interest rate setting meeting, and could signal that it intends to re-activate its dormant government bond-buying plan.
However with recent signs that global economic data is slowing and continued fears that the euro zone debt crisis could be spreading, European share gains could be limited.
“The relief rally is very small considering the sell-off yesterday,” Matt Brown, trader at Catalyst Markets, said. “I expect the recovery is going to be tentative.”
“The ECB press conference will be of interest and investors will be hoping to see plans to put any money into the system. If we do see a reversal of investor sentiment we could see the market gain 10 percent.”
Topics Carriers Europe Training Development
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