European Stocks Flat as Dollar Extends Decline: Markets Wrap

European stocks erased early losses to close little changed as positive economic data in the region offset negative sentiment following a slump in Chinese equities. The dollar extended a retreat sparked by Wednesday’s more dovish than expected Federal Reserve minutes.

With U.S. markets closed and most American investors out for the Thanksgiving holiday, the Stoxx Europe 600 struggled for traction amid mixed regional benchmarks and a stronger euro. The common currency headed for a five-week high after data showed the euro-area economy picked up momentum in November and as Germany’s Social Democrat party was said to be open to talks with Chancellor Angela Merkel. Most bonds in the region nudged lower. Sterling headed for its first drop in eight days after a volatile session yesterday following the U.K. budget. Earlier in Asia, Chinese stocks fell sharply after a recent surge that prompted government warnings about runaway prices.