Europe open: Share tread water on weaker Wall St; H&M surges on Q1

(Sharecast News) - European shares were flat at the open as investors looked for direction and shares in Swedish fashion giant H&M surged after profits smashed estimates. The pan-European Stoxx 600 index was up 0.04% at 511.31, just off the record high set on Tuesday.

"Caution continues to reign after another day of decline on Wall Street. Many investors seem a little wary as New York indices hang near record levels, trade tensions between the US and China bubble and key data out on Friday threatens to show US inflation is still stubborn," said Hargreaves Lansdown analyst Susannah Streeter.

In equity news H&M rose almost 13% after first-quarter operating profit rose more than expected to 2.08 billion krona.

Diploma surged 10% after announcing it had bought Peerless Aerospace Fastener, a distributor of specialty fasteners into the US and European aerospace markets for £236m.

Paper and packaging maker DS Smith also jumped after reports it was now the target in a bidding war between rival Mondi - with which it has an "agreement in principle" to merge with its fellow UK-listed peer - and International Paper of the US.

Reporting by Frank Prenesti for Sharecast.com