Euro Shares End Mixed; Commodities Drag

European stocks ended flat after a choppy session on Friday. Commodities skidded while drug stocks got a boost from Roche's bid for Genentech.

The pan-European FTSEurofirst 300 index gained less than a tenth of a percent to close at 796.76, after a yo-yo session.

"This week has been all about trying to find a consolidation zone for the market ... It is directionless at the moment," said Mike Lenhoff, chief strategist at Brewin Dolphin in London.

"We'll see more of the same," he added.

"It'll tease people in and it'll tease people out ... for the next few weeks until there is a sense that the things the central banks and governments are doing will see us through the recession."

Xstrata was one of the biggest decliners in Europe, shedding 12 percent as copper prices dropped, and extending its losses from Thursday when it announced a heavily discounted rights issue.

BHP Billiton lost 7.5 percent amid market chatter that it was lowering its earnings forecast ahead of its results next week.

Antofagasta shed 6 percent and Anglo American lost 5.5 percent, also hit by the drop in copper prices.

Oil shares also skidded, with BP down 0.9 percent and Royal Dutch Shell off 3.9 percent.

Across Europe, the FT-SE 100-share index fell 1 percent, Germany's Xetra Dax index dropped 2 percent and France's CAC 40-share index lostl 1.2 percent.

Roche rose about 2 percent after it launched a surprise hostile bid for U.S. biotech group Genentech .

It cut the value of its bid for the 44 percent of Genentech shares it does not already own, reflecting tougher financing conditions and a drop in Genentech shares.

Novartis and Sanofi-Aventis each gained more than 1 percent.

Banks were mixed. On the upside, Royal Bank of Scotland rose 4.8 percent and Barclays added 5.8 percent.

Dexia fell 7.2 percent. Belgian Prime Minister Herman Van Rompuy said that government help for the troubled Belgian-French financial services group is sufficient so far.

French bank BNP Paribas rose 1.7 percent, after the company, the Belgian government and embattled financial group Fortis agreed to revisions to the latter's carve-up.

Land Securities led the gainers in Europe with an 8.8 percent rise, the UK property sector in demand after Morgan Stanley upped its outlook for several firms, saying it is switching its preference to the UK, from Europe.

Among its peers: Liberty International added 3.8 percent, Hammerson rose 4.5 percent and British Land gained 2 percent.

U.S. stocks fell on Friday after news the economy shrank at its fastest pace in nearly 27 years, while downbeat data and earnings reinforced apprehension about the plight of consumers and manufacturers.

"Normally, the fact that the GDP figure was not as bad as expected would have lifted the markets," Anthony Grech, market strategist at IG Index.

"It's a sign of just how poor sentiment remains at the moment that any slightly less than negative news gets ignored," he said.

Copyright 2009 Reuters. Click for restrictions.