European stocks were flat in choppy trade on Thursday as better-than-expected euro zone business activity data helped offset some weak corporate results from companies such as French tyre-maker Michelin.

Euro zone businesses performed much better-than-expected this month but did so by slashing the prices again, and optimism about the future fell to its lowest level in over a year, surveys showed on Thursday.

Earlier data showed Germany’s activity increased in both the manufacturing and services industries, but France’s business downturn deteriorated.

“Germany saved the day but people are still bearish and I think we are going to see some more weakness,’’ Mike Reuter, a broker at Tradition, said.

The pan-European FTSEurofirst 300 index was flat at 1,308.28 points at 0832 GMT, hovering some 7 per cent above a 13-month low hit last week.

Weakness in emerging markets remained a drag on European companies, however.

Michelin and Unilever cited poor demand from emerging markets as the former cut its full-year revenue goal and the latter reported weaker-than-expected quarterly sales. Unilever’s London-listed shares were down 2.4 per cent, while Michelin shed 3.6 per cent.

Britain’s biggest grocer Tesco and French advertising group Publicis also fell sharply after reporting disappointing numbers.

Among a handful of outperformers, Finland's Nokia beat market expectations as it reported strong third-quarter profit growth and lifted the profitability outlook for its core network unit on the back of network roll-outs in North America and China, sending its shares up 5.3 per cent.

Danish industrial enzymes maker Novozymes also reported third quarter earnings above expectations and raised its full-year outlook for operating profit growth. Its shares rose 6.6 per cent.

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