Summary The European single currency gained to 79.11 British pence from 78.78 pence.
LONDON (AFP) - European stock markets diverged Thursday in choppy trading as investors reacted to some disappointing earnings updates and slightly positive global economic data.
London s benchmark FTSE 100 dropped 0.46 percent to stand at 6,370.10 points in midday deals, dragged down by a retreating retail sector.
Frankfurt s DAX 30 edged up 0.12 percent to 8,950.87 points and in Paris the CAC 40 rose 0.09 percent to 4,108.66 compared with Wednesday s closing value.
The region s indices had closed higher on Wednesday, helped by speculation that central banks may take further stimulus measures and put off rate hikes to support global economic growth.
A key survey Thursday showed business activity in the 18-nation eurozone strengthened slightly in October, but overall the economy remained weak with new orders low and pressure on prices.
Markit Economics said its Composite Purchasing Managers Output Index (PMI) rose marginally to 52.2 points in October from a 10-month low of 52.0 points in September.
"We ve had a mixed bag of data from Europe... which probably explains the lack of direction in the markets," said Craig Erlam, market analyst at Alpari traders after stocks rose then fell.
"Once again, the focus was largely on the eurozone and whether it can show any signs of delivering growth in the near future. Stagnation has almost become an accepted norm for the eurozone in recent years, with even marginal growth being celebrated."
Asian equity markets closed lower Thursday on profit-taking following the previous day s hefty gains, while there was little positive reaction after a closely watched indicator showed a slight pick-up in Chinese manufacturing activity.
In foreign exchange, the euro climbed to $1.2667 from $1.2643 late in New York on Wednesday.
The European single currency gained to 79.11 British pence from 78.78 pence. The British pound dropped to $1.6009 from $1.6049 on Wednesday.
On the London Bullion Market, the price of gold slipped to $1,240.50 an ounce from $1,243.75.
- Tesco troubles -
In corporate news, the chairman of Britain s biggest retailer Tesco resigned on Thursday as the troubled supermarket group said a huge accounting error began earlier than thought and contributed to plunging profits.
Tesco shares were down 5.77 percent at 172.49 pence, topping the losers board in London, while dragging down other supermarket groups. Morrison lost 3.29 percent to 152.7 pence and Sainsbury s slid 2.33 percent to 235.98 pence.
In Paris, supermarket giant Carrefour shed 1.18 percent to 22.68 euros.
Elsewhere, Unilever dropped 2.69 percent to 29.49 euros after the Dutch food and cosmetics giant on Thursday posted a third quarter drop in sales blamed on a slowdown in emerging markets, particularly in China.
Analysts noted that despite Thursday s poor updates from the retail sector -- Britain also posted a drop in official sales for September -- earnings have generally been well received.
Oddo Securities trader Nathalie de Medina said that investors "have realised that the company results released have overall been not that bad and they are taking advantage to reposition" after last week s heavy stock market falls.
Orange, formerly France Telecom, climbed 3.2 percent to 11.27 euros despite a 2.3 percent drop in sales as its perspectives have improved as it appears the price war in the French market is nearing an end.
Shares in Safran got a 4.3 percent lift to 48.55 euros, as the company posted a 7 percent overall gain in sales thanks in large part due to demand for new-generation fuel-efficient engines from Airbus and Boeing.
But Michelin skidded 5.1 percent to 66.90 euros after a 4.6 drop in third quarter sales despite a recovering European car market, and cut its forecast for an increase in sales volume to a gain of just 1 to 2 percent.
