* FTSEurofirst 300 flat, Euro STOXX 50 down 0.07 pct
* FTEU 300 set to snap longest run of weekly gains in 2 yrs
* Euro STOXX 50 finds support on 50-day moving average
* Buying convertibles seen good way to avoid pull-backs
* Barclays halts sell-off sparked by U.S. dark pool lawsuit
By Blaise Robinson
PARIS, June 27 European stocks were steady
around midday on Friday, halting a week-long sell-off, with
Airbus rising after sources said the European plane
maker is set to clinch a deal with Rolls-Royce for A330
Airbus shares were up 1.5 percent while Rolls-Royce shares
were up 1.3 percent after sources told Reuters Airbus is set to
upgrade its A330 with engines provided exclusively by
Rolls-Royce, opening a new chapter in the fight for wide-body
jet orders with Boeing's 787 Dreamliner.
At 1122 GMT, the FTSEurofirst 300 index of top
European shares was flat at 1,370.55 points. The index - which
has lost about 2 percent in the past five sessions, hurt by
downbeat U.S. growth data as well as worries over violence in
Iraq - is set to snap a 10-week long run of weekly gains, its
longest winning streak since mid-2012.
The euro zone's blue-chip Euro STOXX 50 index
was down 0.07 percent at 3,230.93 points, but its losses were
limited by a strong support level at 3,225, representing the
index's 50-day moving average.
"The low-growth environment, flagged by the latest U.S. and
European data, is actually not a bad thing for equities. It
forces asset allocators to switch out of fixed income, where the
returns are extremely low, and into more risky assets such as
stocks," said David Thebault, head of quantitative sales trading
at Global Equities, in Paris.
"While stock indexes look toppish in the short term, one way
to play this rotation towards risk is to buy convertible bonds.
It's a great hedge against a potential stock market correction
in the next months, while maintaining exposure to a further
leg-up in stocks in the longer term."
Around Europe, UK's FTSE 100 index was up 0.2
percent, Germany's DAX index up 0.06 percent, and
France's CAC 40 up 0.09 percent.
Shares in Barclays stabilised following their 6.5
percent drop on Thursday after the Attorney General filed a
securities fraud lawsuit accusing it of giving an unfair edge to
its U.S. high-frequency trading clients in its "dark pool"
Analysts at Citi pointed to the "negligible" revenue
contribution of dark pools to Barclays, saying the impact on the
rest of the equities business should be limited so long as any
fine is proportionate.
"I wouldn't be a keen buyer of the stock until we know more
detail about what's going on," said Matt Basi, senior sales
trader at CMC Markets. "To say it's not meaningful because of
its small revenue contribution is disingenuous, as it is
reputational damage that also counts."
Europe bourses in 2014: link.reuters.com/pap87v
Asset performance in 2014: link.reuters.com/gap87v
Today's European research round-up
(Additional reporting by Alistair Smout in Edinburgh; Editing
by Toby Chopra)