European stock markets generally stagnated Wednesday in featureless trade and in the aftermath of a report pointing to persistent weakness in the US housing market.

Share prices showed little movement after Asian markets turned in a mixed performance in response to investor caution.

In London London FTSE 100 index slipped 0.07 percent to close at 5372.10 points while in Paris the CAC 40 was stable, losing 0.02 percent to finish at 3828.16. The Frankfurt Dax edged up 0.16 percent to 5781.61.

Elsewhere there were declines of 0.06 percent in Brussels, 0.5 percent in Amsterdam and 0.12 percent on the Swiss Market Index.

The Madrid market, by contrast, jumped 0.63 percent to 12 034 points, its first finish above 12 000 since August 2008 and the start of an acute slide in the Spanish economy.

Disappointing US economic news sent Wall Street stocks lower in morning trade, with investors consolidating recent hefty gains.

The Dow Jones Industrial Average was down 0.35 to 10 400.92 at mid-day while the Nasdaq had 0.72 percent to reach 2187.82.

Market action came after a report showing US housing starts tumbled 10.6 percent in October when permits fell 4.0 percent, suggesting ongoing weakness in the troubled real estate sector.

A separate report showed US consumer prices rose by a higher than expected 0.3 percent in October primarily due to higher gasoline prices.

Analysts at Charles Schwab & Company said the price report is "possibly reviving some inflation concerns that have been subdued" and noted that the news on home construction had served to "sour sentiment on the Street."

Fred Dickson at DA Davidson & Company said many investors were waiting for a correction of at least five to 10 percent before committing new funds to equities, following the massive rally of more than 60 percent since March.

"Individual investors continue to remain on the sidelines viewing the high unemployment rate and the difficulty of their hometown businesses to obtain financing as reasons to stay away from the equity markets," he said.

"Some are even selling stocks that have returned to price levels seen ahead of the Lehman collapse in September 2008 that triggered the ugly phase of the credit crisis."

In London the market welcomed the appointment of Dutchman and supermarket boss Marc Bolland as its new chief executive.

Bolland, 50, credited with reviving the fortunes of British supermarket chain Morrisons since his appointment there as chief executive in 2006, will replace Briton Stuart Rose at the start of 2010, M&S said in a statement.

Marks & Spencer was the day's big winner, gaining 5.89 percent.

Elsewhere mining groups drew support from further dollar weakness, with Xstrata rising 5.89 percent.

In Paris insurer AXA shot up 2.87 percent in the midst of a capital increase aimed at raising two-billion euros to finance acquisitions in Asia.

On the Frankfurt Dax chip-maker Infineon rose 0.87 percent a day before it is to publish its 2008-2009 results after a disastrous 2007-2008 fiscal period.