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European shares steady, Novozymes, E.ON drop on weak updates

Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, August 9, 2016. REUTERS/Staff/Remote

By Kit Rees

LONDON (Reuters) - European shares steadied on Wednesday, though a slump in Novozymes after a weak set of second-quarter results weighed, while German utility E.ON also dropped after posting a net loss.

The pan-European STOXX 600 index (.STOXX) was flat in percentage terms, coming off its lows after opening in negative territory.

Danish biotechnology company Novozymes (NZYMb.CO) sank 8.5 percent after posting weaker than expected second-quarter results and downgrading its full-year sales guidance due to declining sales of its ethanol enzymes and in its agriculture product alliance with Monsanto (MON.N).

It shares were on track for their biggest daily loss in one year.

E.ON (EONGn.DE), Germany's largest utility, dropped 6 percent after reporting a net loss of more than 3 billion euros ($3.34 billion) for the first half of the year due to further charges at power plant unit Uniper.

The oil & gas sector (.SXEP) was also a drag, with weaker oil prices weighing. Amec Foster Wheeler (AMFW.L), which rose nearly 12 percent in the previous session on the back of some well-received earnings, gave up some of those gains to trade 3.4 percent lower.

Britain's G4S (GFS.L), however, jumped more than 15 percent on well-received first-half earnings, putting it on track for its biggest daily gain since September 2001. The world's largest security firm also maintained its dividend.

"Income is quite hard to come by now, so stocks like G4S which have come off a lot and might be considered "cheap" ... are always going to be looked at quite closely by investors looking for capital gains, looking to make some money, and any inkling that there may be better times ahead will be jumped upon," said Augustin Eden, research analyst at Accendo Markets.

Insurance stocks (.SXIP) were boosted by a 3.7 percent gain in Belgian insurance group Ageas (AGES.BR), which rose after reporting better-than-expected profit from insurance activities in the second quarter, aided by growth in its Belgian home market and a divestment in Asia.

Danish telecoms company TDC (TDC.CO) gained 5.8 percent after posting a strong Q2 report.

(Reporting by Kit Rees; Editing by Gareth Jones)