Weak insurers curb euro stocks gains

European equity markets were slightly higher in mid-morning trading today ahead of key US economic data and oil-share gains on…

European equity markets were slightly higher in mid-morning trading today ahead of key US economic data and oil-share gains on firmer crude prices.

But enthusiasm was curbed by weak insurers after a profit warning overnight from Swiss Life.

"I expect concerns over insurers' guaranteed returns to run and run as equity markets remain weak," said Ms Sharon Coombs, a pan-European strategist at HSBC Securities.

"Markets are pretty flat, waiting for the US data to provide direction. We are predicting a bigger rise in jobless than the consensus and we expect consumer spending to fall in the first quarter compared to the fourth as a result", said Ms Coombs.

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At 10.44 GMT, the FTSE Eurotop 300 index of European blue chips was up 0.47 per cent while the narrower DJ Euro Stoxx 50 index added 0.52 per cent.

US equity index futures suggested stocks were headed for a flat open on Wall Street. March futures for the S&P 500 index fell 0.27 per cent, and futures for the Nasdaq 100 March contract dropped 0.23 per cent.

Techs, healthcare, oils, media, basic producers, foods, telecoms and banks were higher. Insurers and financials dominated the decliners. Chemicals were also weak on rumours of weak earnings.

but the Federal Reserve said on Wednesday the US economy was showing signs of turning a corner.