European Shares Drift Lower Ahead Of US GDP Data

European stocks were subdued on Thursday due to year-end profit booking.

Amid interest rate uncertainty, traders looked ahead to the release of the final estimates of U.S. third-quarter GDP data later in the day and the Fed’s preferred inflation gauge on Friday for direction.

Closer home, data showed French manufacturers’ confidence improved and returned to its long-term average in December after staying stable in the previous two months.

The manufacturing sentiment index rose to a 5-month high of 100 in December from 99 in the previous month. Economists had expected confidence to fall to 98.0.

Elsewhere, official data revealed Britain’s budget deficit widened in the financial year to November to the second highest level on record, giving little fiscal headroom for the government to cut tax rates.

In the financial year to November, government borrowing increased by GBP 24.4 billion from the same period last year to GBP 116.4 billion. This was the second highest financial year-to-November borrowing on record.

The pan European STOXX 600 was down 0.3 percent at 476.40 after gaining 0.2 percent on Wednesday.

The German DAX and France’s CAC 40 both slipped around 0.4 percent, while the U.K.’s FTSE 100 was down 0.2 percent.

Swisscom fell over 1 percent after reports that the telecom firm is weighing an offer for Vodafone’s Italian business.

Eni S.p.A. edged up slightly. The Italian energy major announced an agreement under which Switzerland’s Energy Infrastructure Partners AG will invest up to 0.7 billion euros in Eni Plenitude S.p.A.

HICL Infrastructure rose half a percent in London. The investor in infrastructure assets announced that it has agreed to acquire a further 3.1 percent stake in the A63 Motorway concession in France for about 20 million pounds from a co-shareholder.

Artemis Alpha Trust plunged 5.5 percent as it reported loss before tax of 11.40 million pounds for the first half.

Alstom rose about 1 percent in Paris. The company has emerged as the successful bidder for a contract worth around 900 million euros to maintain the regional rolling stock VLocity and Classic fleets in Victoria, Australia for the next decade.

Sanofi SA was moving lower after saying it is discontinuing the global clinical development program of tusamitamab ravtansine.