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Jyske Bank ( JYSKF ) up after FY guidance hike

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ArcelorMittal down after GS downgrade

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Technip Energies slides after Exane BNP Paribas downgrade

(Updates prices, adds analyst comments and details)

By Amir Orusov

Oct 10 (Reuters) -

European shares were steady on Friday, and on track for a

third straight weekly gain, as investors focused on French

politics ahead of President Emmanuel Macron's expected

announcement of a new prime minister.

The pan-European STOXX 600 was mostly flat at 571.2

points by 0906 GMT, headed for a 0.1% gain this week.

Automobiles climbed 0.7%, with Milan-listed shares

of Stellantis ( STLA ) gaining 1.6% after the automaker said

its global vehicle shipments rose 13% year-on-year in the third

quarter.

German rival Mercedes jumped 2.1% following its pre-close

call on Thursday.

Real estate climbed 0.9%, on track to snap a

four-day losing streak. Food & beverages rose 0.9%, on

pace to extend gains to a fourth straight session.

On the downside, oil and gas shed 0.9% with France's

Technip Energies down 5% after Exane BNP Paribas

downgraded its rating on the energy infrastructure company to

"neutral" from "outperform".

Basic resources slipped 0.8%, with ArcelorMittal

down 2.9% after Goldman Sachs downgraded its rating on

the steelmaker to "neutral" from "buy".

Attention would be on France, where President Emmanuel

Macron will convene a meeting of France's mainstream political

parties ahead of a self-imposed deadline to name a new prime

minister.

"From a short-term perspective, it will be a positive

development for the French stock market because it removes some

of the risk premium," said Daniela Hathorn, senior market

analyst at Capital.com.

"It's just a case of how much of that is actually able

to follow through into the medium term."

French blue chips are set for weekly declines as

markets were rocked on Monday after Sebastien Lecornu, France's

fifth prime minister in two years, tendered his and his

government's resignation just hours after announcing the cabinet

line-up.

Utilities and telecoms are on track to

be one of the best performing sectors in Europe this week, while

automobiles and retail are the laggards.

The STOXX hit a record high earlier this week as growing

bets of softer monetary policy by the U.S. Federal Reserve and

unwavering AI optimism has lifted global benchmarks.

Among other movers, Germany's Energiekontor

dropped 18.7% after the wind and solar park developer cut its

2025 earnings forecast.

Jyske Bank ( JYSKF ) gained 4.4% after the Danish lender

hiked its full-year

guidance

.