Bourses end flat as US equities lose gains

European equities were little changed on Friday, coming off intraday gains as Wall Street indices lost momentum.

Banking stocks fell as investors continued to mull over the implications of the fraudulent activities of Société Générale trader Jérôme Kerviel, who lost the French bank EU4.9bn.

The FTSE Eurofirst 300 closed flat at 1,329.8. Frankfurt's Xetra Dax was 0.1 per cent lower at 6,816.7, losing intraday gains of almost 2 per cent. London's FTSE 100 slipped 0.2 per cent to 5,869.0.

The CAC 40 in Paris was hit harder, with the biggest bruises inflicted on its banks. The French benchmark finished 0.8 per cent weaker at 4,878.1.

Société Générale ended the day with its reputation in tatters and its shares down 2.6 per cent at EU73.9. Traders said its stock was saved from more of a battering only because it was thought to be vulnerable to a takeover.

The rest of the French banking sector continued to suffer. BNP Paribas fell 3.6 per cent to EU65.50 and Natixis lost 2.5 per cent to EU11.40. Fortis was the biggest loser, off by 10.9 per cent at EU13.21.

There was better news for French retailers after Casino Guichard gained 6 per cent to EU74.96 after announcing like-for-like sales rose 6.5 per cent in the fourth-quarter.

Dutch rival Ahold beat forecasts with a 6.6 per cent increase in fourth-quarter sales, boosting its shares by 2 per cent to EU8.67.

News of success for Carlsberg and Heineken in their pursuit of UK brewer Scottish & Newcastle generated a mixed response. Their recommended offer was priced at 800p per share and valued S&N at £7.8bn. Carlsberg lost 4.1 per cent to DKr535 as traders considered the relative cost of the deal to each company, whilst Heineken slipped 0.6 per cent to EU40.03. Scottish & Newcastle rose 2.2 per cent to 785.7p.