Global Market: European shares struggle for direction as France unrest weighs on sentiment

European shares traded largely flat on Wednesday as concerns over violent unrest in France offset support from a strong batch of corporate earnings, keeping investor risk appetite subdued, Reuters reported.

The pan-European STOXX 600 index was unchanged at 638.80 points by 0713 GMT, as investors assessed corporate results for fresh direction amid growing uncertainty over the region's economic outlook.

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According to Reuters, shares in recruitment firm Randstad surged 11.6% after the company reported organic revenue growth of 3.9% in the third quarter, beating analysts' average forecast of 2.9%.

Eyewear group EssilorLuxottica gained 11.1% after its third-quarter revenue rose 7.2% at constant exchange rates, also surpassing market expectations. The results provided some support to European equities amid broader concerns about political and economic risks.

However, sentiment remained fragile as investors weighed the implications of unrest in France, which has heightened concerns about the country's deteriorating public finances and slowing economic growth.

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French supermarket chain Carrefour plunged 12.5% after cutting its annual earnings forecast. The company cited higher costs and disruptions to store operations caused by riots, looting and curfews, according to Reuters.

Meanwhile, economic data added to uncertainty over the European interest-rate outlook. British consumer price inflation rose more than expected in September, strengthening market expectations that the Bank of England could raise interest rates at its November meeting.

The UK's FTSE 100 index fell 0.16% in early trading as investors assessed the implications of persistent inflation for monetary policy and economic growth.

With corporate earnings providing support but political instability and inflation concerns weighing on sentiment, European markets struggled to establish a clear direction, Reuters reported.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)