By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets were mostly
higher on Thursday, as upbeat global factory data encouraged
investors to take on more risk, offsetting disappointing earnings
from Apple Inc.
The Stoxx Europe 600 index , however, dropped 0.1% to 288.09,
weighed by shares of Nokia Corp. (NOK).
The Finnish handset maker slumped 10.7% after it said it swung
to a profit of 5 euro cents a share in the fourth quarter, beating
consensus earnings of 2 euro cents a share. Sales fell 20% to 8.041
billion euros, falling short of estimates. The company also
scrapped its dividends for 2012.
Frances Hudson, global thematic strategist at Standard Life
Investments, said that the overall trading mood struggled for
direction as "the clues we're getting have not been terribly
helpful and are not conclusive in one direction or the other."
"From a macro point of view we're in glass-half-full mode. We
got better PMIs and people are taking that as a positive. But even
when the data has not been terribly supportive, like the Japanese
trade data, there's a feeling that the market is willing to be
quite optimistic," she said.
But market participants were also preoccupied with the earnings
season in the U.S., where a disappointing earnings report from
Apple (AAPL) weighed on the broader risk sentiment globally,
sending both Asian and some U.S. markets lower.
"We've seen other less impressive results and it's clear that
it's still a difficult business environment. Apple was a trigger to
see that," Hudson said.
"It's the biggest company in the world," she added. "But to
maintain that leadership you need to keep innovating and have the
next new product waiting and we don't know what that next new
product is."
U.S. markets had closed in positive territory on Wednesday,
after the Republican-controlled House of Representatives approved a
suspension of the debt ceiling until May 19.
On the data front in the U.S. on Thursday, the preliminary
reading of the manufacturing purchasing managers' index rose to a
56.1 reading in January from 54.0 in December, marking a 22-month
high.
Meanwhile, initial jobless claims dropped by 5,000 to 330,000
and remained at a five-year low.
Among notable movers in Europe, of shares of Logitech
International SA sank 11.4%, after the computer-equipment firm said
it swung to a net loss of $195 million in the third fiscal quarter
compared with a profit of $55 million the year-ago period.
On a more upbeat note, U.K. mining firms showed upbeat moves,
after HSBC's so-called "flash" manufacturing Purchasing Managers'
Index for January climbed to a 24-month high of 51.9, indicating
business conditions for Chinese manufacturers improved further.
Shares of Anglo American PLC gained 0.5%, while heavyweight Rio
Tinto PLC (RIO) was up 1.1%. That helped the FTSE 100 index rise
0.6% to 6,237.19.
The broader stock markets further trimmed losses, after the
Markit composite purchasing-managers' index for the euro zone
signaled the economic downturn in the region eased in January. The
index rose to 48.2 from a December reading of 47.2, beating
expectations of a 47.6 print. A reading below 50 signals
contraction.
France's CAC 40 index was up 0.3% to 3,736.93, after trading as
low as 3,711.55 earlier in the session.
Shares of LVMH Moët Hennessy Louis Vuitton gained 1.3% to 140.25
euros. J.P. Morgan Cazenove raised the luxury-goods maker's price
target to EUR142 from EUR132 previously.
Outside the main index in Paris, shares of CGG Veritas slumped
2.5%, after Goldman Sachs cut the oil-services firm to sell from
neutral.
Germany's DAX 30 index put on 0.2% to 7,724.13, up from an
intraday low of 7,661.96.
Shares of Commerzbank AG gained 0.9%, after the bank confirmed
plans to cut between 4,000 and 6,000 jobs.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires