Nov 24 (Reuters) – Europe’s benchmark share index was flat on Friday even as eurozone bond yields remained higher, but was on course for weekly gains, while investors assessed data in Germany for clues about the country’s economic outlook.

The pan-European STOXX 600 (.STOXX) was unchanged by 0930 GMT but on track for weekly gains of 0.6%, with investors focusing on corporate earnings and prospects of rate cuts.

“It’s just a hangover from the U.S. Thanksgiving, investors don’t want to take any fresh positions when they’re not entirely sure whether the peak Fed rate narrative is a story to keep running with,” said Giles Coghlan, chief market analyst at brokerage GCFX.

Eurozone government bond yields were set to close the week higher as investors balanced recession fears against comments from European Central Bank policymakers pushing against market expectations for rate cuts in 2024.

“Central bankers are understandably communicating in a very cautious way… if they communicate that rate cuts are definitely coming, then they’re going to create the problem they’re trying to solve,” Coghlan added.

For the week, automobile stocks (.SXAP) were the top laggards, while media (.SXMP) and retail stocks (.SXRP) were the top performers.

Miners (.SXPP) lost 0.7%, leading sectoral declines on Friday, while chemicals (.SX4P) rose 0.4%, leading the gainers.

Among individual movers, Forvia (FRVIA.PA) and Continental (CONG.DE) climbed 1.5% and 1.7% after Barclays upgraded each of the car parts makers to “overweight”.

Swedish online gaming company Evolution (EVOG.ST) gained 3.3% following the announcement of a new share buyback.

German chemicals group BASF (BASFn.DE) rose 1.8% after Bloomberg News reported Abu Dhabi National Oil Co is exploring a potential acquisition of its Wintershall Dea unit.

Flutter Entertainment (FLTRF.L) fell 2% after Barclays cut its target price, while Porsche (P911_p.DE) also fell 2% following a downgrade by the brokerage to “equal-weight” from “overweight”.

On the geopolitical front, a ceasefire between Israel and Hamas appeared to be holding shakily with no major reports of attacks, although both sides were accused of violations.

Separately, data showed Germany’s economy shrank slightly in the third quarter, confirming an initial estimate of a 0.1% fall. Another set showed German business morale improved less than expected in November.

Meanwhile, German Finance Minister Christian Lindner will propose a supplementary budget for this year, which includes the suspension of limits on new borrowing after a budgetary crisis caused by a court ruling last week.

The German DAX (.GDAXI) was up 0.1%.

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