LONDON (ShareCast) - (Sharecast News) - Stocks on the Continent are little changed as investors wait on events in Westminster after MPs failed to agree on any alternative to the British Prime Minister's withdrawal deal, although investors appeared to remain upbeat following solid readings on US and Chinese manufacturing the day before.
"European markets are mixed this morning, but a weaker pound has helped the FTSE 100 to rise above the gloom. The resurgence in risk appetite looks to have legs, supported by stronger (or at least less bad) economic data, and any short-term weakness should probably be resolved in favour of the bulls in due course," said IG's Chris Beauchamp.

UK Prime Minister, Theresa May's cabinet was set to hold a five-hour long meeting to decide on its next steps after MPs shot down all the alternatives to her plans that had been tabled, including for remaining within a customs union, by 276 votes against 273.

According to the New Stateman's political editor, Stephen Bush:"Among the various Brexit factions, there is a blame game between the advocates of a soft Brexit and the supporters of a second vote."

Against that backdrop, as of 0959 BST the benchmark Stoxx 600 was drifting lower by 0.09% to 383.31, alongside a dip for the German Dax of 0.04% to 11,677.59, while the FTSE Mibtel was shedding 0.31% to 21454.15.

From a sector standpoint, Utilities were sporting a small bid while Basic Resources were seeing some light profit-taking following the prior day's surge.

In parallel, the pound was 0.32% lower against the euro at 1.1649 and front month Brent crude oil futures were ahead by 0.35% to $69.25 a barrel on the ICE.

Elsewhere on the international trade front, France was holding out on giving the European Commission permission to start talks on eliminating industrial tariffs between the US and the European Union, Bloomberg reported, with a delay in negotiations said to risk an escalation of tensions with Washington even as the euro area economy slowed sharply.

As an aside, Chinese vicepremier, Liu He, was set to travel to Washington on Wednesday for the next round of trade negotiations.

Also worth noting, in his annual letter to French President, Emmanuel Macron, Banque de France Governor, Francois Villeroy de Galhau called on Germany and Holland to boost their government spending.

Tuesday's economic data calendar was rather sparse, although Eurostat did report that euro area factory gate prices edged higher by 0.1% month-on-month, driving a 3.0% increase year-on-year (consensus: 3.1%).

For later in the session, Irish unemployment data covering the month of March were set for release at 1100 BST.

In corporate news, Novartis was slipping 1.06% after a US court ruled that it was potentially liable for allegations of running a kickback scheme so that medical practitioners in the US would prescribe its drugs.

French IT giant Atos was under the cost after analysts at Berenberg took an axe to their share target price cutting it from €90 to €60.

Going the other way, the same German broker upped its target on shares of H&M from SEK100 to SEK110, but stayed at a 'sell'.

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