European stocks swung to trade positively Thursday lunchtime as the European Central Bank (ECB) provided the market with clues on the end of its massive bond-buying program.
The pan-European Stoxx 600 was up 0.2 percent, despite negative trade earlier in the session. Major bourses and business sectors were pointing in different directions.
The ECB outlined plans to end its massive stimulus program by the end of this year. The bank said Thursday that if incoming data followed its forecasts, then its monthly bond purchase program would be extended through to the final quarter of the year, though at a lower pace. This means the program would likely end in December if the euro zone economy remained resilient.
Media was among the worst-performing sectors, down by 0.5 percent, though it had been trading lower by more than 1 percent in the morning. WPP shares fell following a heated annual general meeting in the previous session. Thirty percent of shareholders voted against a pay proposal involving the former chief Martin Sorrell, who left the company in April following an allegation of misconduct. Almost 17 percent of shareholders were also against the re-election of chairman Roberto Quarta.
Looking across the European benchmark, Aveva shares led the gains, up by more than 12 percent. The company reported a full-year adjusted pretax profit of over 23 percent.
Volkswagen shares were trading 0.8 percent higher, though they were negative earlier in the session after the German carmaker was fined 1 billion euros over its diesel emissions scandal. German prosecutors have said that VW sold over 10 million cars with a cheating software that understated diesel emissions. Volkswagen accepted the verdict, saying it won't appeal against it. This is one of the highest ever fines imposed by German authorities on a company.
Renault's Chief Executive Carlos Ghosn will reportedly step down before the end of his term in 2022. Ghosn told the Financial Times he would likely stand down as CEO of the carmaker but would stay chairman and chief executive of the Renault-Nissan-Mitsubishi alliance.
Rolls-Royce is trading higher as it plans to slash 4,600 jobs to streamline the business. The U.K. listed engineer said the cuts, which represent around 9 percent of its workforce, will help the engine maker meet its free cash flow target through cost savings of around 400 million pounds.
Shares of Unilever slumped after warning its first-half sales will come in below its 3 to 5 percent full-year target. The Anglo-Dutch firm also said that it is "extremely unlikely" to remain listed in the FTSE after consolidating its headquarters in the Netherlands.