European shares steady as markets pause after rally

European shares were muted on Thursday, after three consecutive sessions of gains on rising hopes of a Federal Reserve interest rate cut next month, while Puma shares surged after a report of takeover interest.

The pan-European STOXX 600 was down 0.2% at 572.97 points by 0806 GMT.

The index is trading around one-week highs. Major regional bourses were flat to lower.

London’s FTSE 100 fell 0.2% a day after the autumn budget was announced.

Germany’s DAX was flat. Puma surged 13% after a Bloomberg News report said Chinese sportswear maker Anta Sports Products is among the firms exploring a potential takeover of the German sportswear retailer.

European markets took a breather on Thursday, after rallying in the last three sessions, as investors drew comfort from some Fed officials advocating for a rate cut next month, supported by economic data pointing to weakness in the economy.

Progress on a Russia-Ukraine peace deal also contributed to the upbeat sentiment so far this week.

Markets in the US are closed for the Thanksgiving holiday, and will trade for a shorter session on Friday.

Minutes from the European Central Bank’s previous meeting will also be in focus on the day.