European stocks end flat

European share indexes ended little changed yesterday following mixed corporate reports from companies including Credit Agricole and SAB Miller, while telecoms stocks continued a strong recent run.

The DJ Stoxx telecoms index rose 1.1 per cent, taking its gains since mid-August to more than 18 per cent as buyers bet that dividends and share buybacks would continue to increase after a long period in which companies rebuilt balance sheets and repaid debt.

Vodafone, mm02 and Telecom Italia all climbed between two and four per cent.

The FTSEurofirst 300 index of pan-European blue chips closed unchanged at 1,037 points, just three points off its 28-month peak last week.

Turnover was healthy at around €3.2 billion while stocks to fall outnumbered those to rise by five to four.

The narrower DJ Euro Stoxx 50 index fell 0.2 per cent to 2,917.2 points.

British retailers were weak for a second straight day after data showed UK retail sales fell for the first time in three months in October, down 0.4 per cent.

"Europe is looking pretty sickly," said Dan Birch, a strategist at broker Execution.

"Luckily, most companies in Europe do export to the US... but after those UK retail sales (figures), you've got to be looking to short some of these retail stocks."