European shares were mixed yesterday, despite solid US consumer confidence data, as a warning from retailer Ahold offset Nokia-led tech gains and Wall Street's weak opening weighed on the market.
The University of Michigan consumer sentiment preliminary survey for October came in at 89.4, above September's level of 87.7 and beating economists' expectations for 88.3.
Nokia was the top blue-chip gainer, up 4.5 per cent to recoup some of the losses suffered on Thursday after the Finnish group's cautious outlook.
By 1610 GMT, the FTSE Eurotop 300 index of pan-European blue chips was 0.1 per cent higher at 920 points, while the narrower DJ Euro Stoxx 50 index gained 0.1 per cent to 2,560 points.
The consumer confidence survey, along with an earlier upbeat housing data report and a much-better-than-expected rise in a business survey index for the Philadelphia area on Thursday, added to hopes about the sustainability of the economic rebound.
"Consumer confidence was strong, continuing the theme of the very strong Philly Fed yesterday," said ABN AMRO global economist Matthew Wickens.
Wickens said US companies were currently enjoying strong profit growth as increasing demand fed through to those that restructured, generating strong free-cash flows.
"I would say that the corporate sector in America is very able to start spending and re-hiring again.... For equities, this sweet spot of growth, not too cold, not too hot, is going to persist."
Around Europe, London's FTSE 100 was unchanged, Frankfurt's DAX fell one per cent while the CAC 40 was flat in Paris and the Swiss blue chip index inched 0.1 per cent lower.
Across the Atlantic, where stocks dipped from year highs on Thursday, the Dow Jones industrial average was 0.4 per cent lower while the technology-laced Nasdaq Composite Index shed one per cent.
Technology issues were a strong feature, with Nokia and Dutch consumer electronics group Philips leading sector gains.
Smaller cap Netgem surged 26 per cent after BT Group Plc picked the French company to supply set-top boxes for its new Internet and digital TV service. Terms were not disclosed. But BT shares were 1.7 per cent lower.
Dutch retail giant Ahold was a bleak spot, off four per cent after warning of weak 2003 trading and lower sales due to increased competition and higher costs. The announcement raised new investor worries about the group's future funding.
However, Ahold peer Numico jumped 5.6 per cent on news it was selling its General Nutrition Cos unit for $750 million, and investors welcomed its retreat from a costly foray into the US health supplements market.