European stocks ended the day little changed as investors weighed further signs of a slowdown in China’s economy and the view that American’s recovery is strong enough to cope with a Federal Reserve interest rate increase this year.
The Stoxx Europe 600 Index added 0.1 percent to 376.27 at the close of trading, after earlier falling as much as 0.7 percent and rising 0.4 percent. After rebounding 12 percent from its September low through the end of last week, the gauge halted its rally. With Friday’s U.S. jobs data increasing the chances of the Fed raising interest rates this year, investors are speculating on whether the global economy can continue its recovery, while China data keeps disappointing. President Mario Draghi has pledged that the European Central Bank will consider increasing stimulus at its December meeting.
A gauge of telecommunication companies posted the best performance of the 19 industry groups on the Stoxx 600. Vodafone Group Plc added 3.9 percent after reporting better-than-expected service revenue. Royal KPN NV climbed 3.1 percent after saying it sold shares in Telefonica Deutschland Holding AG. The German company slid 2.6 percent.
National Grid Plc added 1.5 percent after the U.K. company said it started a process to sell a majority stake in its domestic gas grid.