European shares steady as metal prices rise

European shares steadied on Wednesday, with gains for basic resources companies such as London-listed BHP Billiton and Rio Tinto underpinning the broader market following a rise in metals prices.

On a relatively quiet day, the British government's autumn statement – its biggest economic update since voters opted in June to leave the European Union – prompted some volatile trading for housebuilders and energy companies.

Meanwhile, oil prices turned positive despite investor doubts that the Opec bloc of oil-producing companies will agree to a production cut large enough to make a significant dent in the global glut of crude oil.

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The Iseq ended little changed on a day of low trading volumes. Building materials group CRH fell 1.4 per cent, ending the session at €31.16, while Ryanair had a flat day, closing unchanged at €14.28.

Food groups Glanbia and Kerry had contrasting sessions, with Glanbia slipping 1.3 per cent to €15.80 and Kerry rising 1.2 per cent to finish at €65.78. Property stocks Green Reit and Hibernia Reit both added to Tuesday's gains, while hotel group Dalata also built on a strong Tuesday, putting on another 1.1 per cent to finish at €4.48.

Paper and packaging group Smurfit Kappa advanced 1.5 per cent to €21.22.

LONDON

The FTSE 100 ended flat after a choppy day's trade. The fortunes of individual sectors diverged as Britain's chancellor of the exchequer Philip Hammond delivered his autumn economic statement.

Housebuilders, which first benefited from government plans to boost housing and infrastructure spending, turned lower. Shares in Barratt Developments fell 1.9 per cent, while Persimmon and Taylor Wimpey both dropped more than 1.5 per cent. Analysts said the extra funding had been anticipated, while the housing delivery plans also lacked detail.

Estate agents Foxtons and Countrywide tumbled 14 per cent and 5.2 per cent respectively on a government plan to ban one-off tenant fees. Centrica and SSE were also volatile, rising sharply and then giving up most of their gains on foot of Hammond's comments on a carbon price support scheme and pricing practices.

Among mid-cap stocks, Thomas Cook surged 7.4 per cent after the travel operator posted profits slightly ahead of expectations. It rose to its highest level since May, when it cautioned that security concerns were dampening summer demand.

EUROPE

The pan-European Stoxx 600 index ended down 0.07 per cent, after rising in the previous two sessions, while Germany’s Dax slipped 0.5 per cent and the Cac 40 in France edged down 0.4 per cent.

However, the European basic resources index rose 1.3 per cent after hitting its highest level since mid-2015 after base as precious metals prices advanced.

Milan-listed CNH rose 6 per cent, making it the biggest gainer on the Stoxx, after the truck and tractor maker was buoyed by a well-received earnings update from US rival Deere.

Generali was among the biggest fallers, with the Italian insurer dropping 3 per cent after it reiterated 2018 targets and said it aimed to cut operating costs. Some analysts expressed concern at the insurer's dividends.

US

The Dow hit an all-time high for the third straight day on Wednesday, helped by a record-setting surge in industrial stocks, but a drop in technology heavyweights kept the S&P 500 and the Nasdaq in negative territory.

Industrial stocks were lifted by a report that showed a strong jump in orders for durable goods in October due to demand for machinery and other equipment. Caterpillar rose as much as 2.8 per cent to a near 2-year high of $96.26. Deere jumped 10.8 per cent to a record high of $101.96 after it reported a much smaller-than-expected decline in profit.

The S&P and the Nasdaq were dragged down by declines in index-heavyweights Microsoft, Alphabet, Facebook and Apple.

The US dollar surged to a near 14-year high after upbeat economic data, including a report that showed consumer sentiment this month jumped more than expected in the wake of Donald Trump’s upcoming presidency.

Eli Lilly was the biggest loser on the S&P, falling 11.5 per cent after the company said it would stop developing its Alzheimer's drug following a trial failure. Biogen, which is developing a similar drug, fell 4.2 per cent.

(Additional reporting: Reuters.)