European Markets Hold Steady Amid Mixed Financial Signals

European stocks remained flat on Thursday, driven by gains in utilities offsetting losses in miners. Investors awaited economic data from the euro zone and the U.S. to assess global interest rates. Key sectors such as utilities and real estate gained, while miners suffered from weak global demand.

European stocks were flat on Thursday as gains in utilities were offset by losses in miners, while investors awaited more economic data from the euro zone and the United States to gauge the outlook for global interest rates.

The pan-European STOXX 600 index remained steady, with miners declining due to falling metal prices influenced by weak global economic data, notably from China. Deutsche Bank Research highlighted the slow recovery in global manufacturing and China as factors affecting the chemicals and basic resources sectors.

Rate-sensitive sectors like utilities and real estate emerged as top gainers, each rising nearly 1% after weak U.S. data on Wednesday supported the potential for Federal Reserve policy easing. German industrial orders also posted a surprising 2.9% increase in July against a predicted 1.5% fall, boosting Germany's DAX index by 0.3%.

Investor focus is now on the euro zone's retail sales data at 0900 GMT and U.S. labor market data at 1230 GMT, which could recalibrate interest rate expectations. The week's main event, however, is the nonfarm payrolls data due on Friday, crucial for market direction until the next consumer price index (CPI) reading.

Currently, markets suggest a 60% chance of a 25-basis-point rate cut by the U.S. central bank in September, expecting a total easing of 109 bps by the end of 2024. Among individual stocks, Associated British Foods fell 4% due to expected declines in Primark's sales, while Vistry rose 2.18% following a 7% earnings increase and share buyback plans. Lanxess gained 2.3% after Morgan Stanley upgraded its rating. Chip stocks like ASML Holdings continued to slide, tracking U.S. semiconductor stock weaknesses.

(With inputs from agencies.)