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By Bloomberg

European stocks were little changed, erasing earlier losses, as gains in energy producers offset a deepening slump in Swiss shares.

The Stoxx Europe 600 Index added 0.1 percent to 348.91 at 11:42 a.m. in London, erasing an earlier drop of as much as 0.9 percent. It is heading for the biggest weekly gain in almost 13 months. A surprise move by the Swiss National Bank to end a cap on the franc sent the benchmark gauge swinging between gains and losses in yesterday’s session. It closed 2.6 percent up amid speculation the move strengthens the case for quantitative easing by the European Central Bank next week.

“It’s very difficult to pinpoint a direction in the markets,” said Teis Knuthsen, chief investment officer at Saxo Bank A/S’s private-banking unit in Hellerup, Denmark. “You have to fear how much the Swiss central bank’s decision will hurt the Swiss economy. There’s definitely speculation that the SNB did this in advance of expectations for the ECB to announce QE next week. You can see a few European markets react to that, and that shows we still have a few pockets of sanity here.”

A gauge of energy shares posted the best performance among 19 industry groups in the Stoxx 600 as oil prices rose. Total SA and Royal Dutch Shell Plc added more than 1 percent. BP Plc climbed 3.5 percent after a U.S. judge ruled it had dumped less oil into the Gulf of Mexico in 2010 than the government had calculated, decreasing the maximum fine the company faces.

Swiss Stocks

The Swiss Market Index declined 4 percent, following yesterday’s biggest slide since 1989 as the franc surged after the SNB’s announcement. It is on course for the worst week since 2008. A gauge of Swiss volatility jumped 33 percent, heading for the biggest three-day advance since at least 1999.

Nestle SA, Novartis AG and Roche Holding AG -- the biggest shares on the Stoxx 600 -- dropped at least 3.6 percent. Watchmakers Cie. Financiere Richemont SA and Swatch Group AG slid more than 5 percent, extending yesterday’s losses.

The Stoxx 600 has gained 3.3 percent this week. It is still 0.6 percent below a Dec. 5 high as a drop in commodity prices dragged energy and mining stocks lower. The number of shares changing hands on Stoxx 600-listed companies was 18 percent greater than the average of the past 30 days, data compiled by Bloomberg showed.