Forexpros – European stock markets were mixed on Wednesday, as investor confidence slightly improved on reports the European Central Bank may resume bond purchases but euro zone debt concerns remained.
During European morning trade, the EURO STOXX 50 fell 0.29%, France’s CAC 40 eased 0.08%, while Germany’s DAX 30 rose 0.14%.
The ECB policymaker said on Wednesday the bank still has its bond-buying program as an option, adding that the scale of market pressure on Spain is not justified given the reforms being undertaken by its government.
But sentiment remained under pressure as Spanish 10-year bond yields remained close to 6%, after briefly retreating on Wednesday following remarks by the country’s prime minister, pledging to implement further austerity measures as soon as this month.
Meanwhile, Italy was preparing to sell EUR5 billion of three-year government bonds later in the day, after seeing its one-year borrowing costs rise for the first time since November in a poorly received debt sale on Wednesday.
Financial stocks were broadly higher as shares in French lenders BNP Paribas and Societe Generale climbed 2.06% and 1.37%, while Germany’s Deutsche bank and Commerzbank jumped 1.25% and 1.34%.
Peripheral lenders also added to gains with Italian lenders Unicredit and Intesa Sanpaolo advancing 1.30% and 1.75% respectively, while Spain’s BBVA and Banco Santander added 0.64% and 0.89%.
Car makers weren’t far behind, as Daimler saw shares rise 1.30% and Volkswagen surged 1.75%. French groups Renault and Peugeot added 0.94% and 0.33%.
Meanwhile, Roche Holding was up 0.29% although the world’s biggest maker of cancer drugs, said first-quarter sales declined 1%, hurt by pricing pressure in Europe and the strength of the Swiss franc.
On the downside, E.ON AG and RWE AG, Germany’s biggest utilities, fell 0.29% and 0.84% respectively after the two companies announced they are stepping up investments in solar energy as falling prices for the technology and the country’s nuclear exit make them chase fresh revenue streams.
In London, commodity-heavy FTSE 100 declined 0.44%, weighed by steep losses in energy stocks.
Royal Dutch Shell led losses, with shares plunging 2.83%, while BP tumbled 1% amid reports the oil and gas giant will gain access to U.S. government documents that may shed light on the size of the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, a crucial issue in determining the company’s liability.
Mining companies Rio Tinto and Bhp Billiton were on the upside however, with shares rising 1.39% and 0.54%, while copper producers Xstrata and Kazakhmys added 0.88% and 1.15%.
Elsewhere, U.K. lenders were mixed. Shares in the Royal Bank of Scotland jumped 1.35% and Lloyds Banking rose 0.65%, while Barclays saw shares ease up 0.01% and HSBC Holdings retreated 0.33%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.26%, S&P 500 futures signaled a 0.27% increase, while the Nasdaq 100 futures indicated a 0.30% gain.
Later in the day, the euro zone was to release a report on industrial production, while the U.S. was to produce official data on the trade balance and initial unemployment claims.
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