By Niket Nishant
Jan 13 (Reuters) - European shares pared gains after hitting a record high on Tuesday as investors sifted through several corporate updates ahead of U.S. inflation data.
The STOXX 600 was
flat by 0940 GMT. Banks edged 0.1% higher, while construction stocks dropped 2%.
Swiss construction chemicals maker Sika reported a 4.8% drop in full-year sales on Tuesday, dragging its shares down 6.7% to their lowest since November.
British homebuilder Persimmon also laid out a cautious outlook for 2026 after reporting that it had sold more homes than expected last year.
The updates will help guide sentiment as markets brace for a key inflation report in the U.S., where the policy outlook has been clouded by a clash between Federal Reserve Chair Jerome Powell and President Donald Trump.
ORSTED JUMPS, UBS IN FOCUS
Shares of Danish offshore wind developer Orsted jumped 5.5% to a one-month high after a federal judge in the U.S. allowed it to resume work on a Rhode Island project, which President Trump's administration had halted along with four other projects last month.
"The injunction is a solid near-term victory that defrays near-term losses," Jefferies analysts wrote in a note.
However, they said that it "does not alleviate longer-term concerns over whether the offshore wind farm will be allowed to be completed and eventually enter into service."
Meanwhile, UBS Group's stock inched up 0.7%. The company is under the spotlight after the Financial Times reported that CEO Sergio Ermotti, who led the Swiss banking giant through its integration of former rival Credit Suisse, is planning to step down in April 2027.
Germany's DAX was flat, a day after it clinched its longest winning streak since 2024.
Diageo shares rose 1%, on track for their fourth straight day of gains. Bloomberg News reported that the company was weighing options for its China assets, including a sale.
Airbus shares rose marginally, after the world's largest planemaker reported that deliveries had risen 4% last year.
Despite muted moves in the STOXX 600, analysts say the underlying fundamentals for 2026 remain firm.
"Defence is well positioned, and value stocks will outperform growth stocks over the medium term," said Shaan Raithatha, senior economist at Vanguard's Investment Strategy Group.
(Reporting by Niket Nishant in Bengaluru; Editing by Nivedita Bhattacharjee and Vijay Kishore)
