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Forexpros – European stocks were mixed on Wednesday, as investors turned to the release of the Federal Reserve’s policy statement later in the day, while the European Central Bank’s policy meeting on Thursday also remained in focus.
During European afternoon trade, the EURO STOXX 50 eased up 0.08%, France’s CAC 40 climbed 0.64%, while Germany’s DAX 30 fell 0.22%.
Markets were jittery amid growing concerns that the ECB will disappoint expectations for bold steps to counter the debt crisis in the euro zone.
Expectations have been mounting that the ECB will announce measures to lower Spanish and Italian borrowing costs after the bank’s head Mario Draghi pledged last week to do whatever is necessary to preserve the euro.
Earlier in the day, German Bundesbank President Jens Weidmann said that governments had overestimated the ECB’s capacities and placed too many demands on it.
Market participants were eyeing the outcome of the Fed’s policy setting meeting later in the day, after U.S. data on Tuesday tempered expectations for another round of quantitative easing measures.
Financial stocks remained mixed, as shares in France’s BNP Paribas jumped 1.82% and Societe Generale fell 0.17%, while German lender Deutsche Bank tumbled 1.09% after saying net income fell 46% in the second quarter.
The German bank also announced that it was sued over claims it manipulated the Yen Libor rate and the price of derivatives tied to theEUR/JPY benchmark.
Earlier in the day, Societe Generale said second-quarter profit fell 42%, missing analysts’ estimates, after the lender took write downs on its Russian unit and U.S. asset manager TCW Group.
Meanwhile, auto makers continued to lead losses, as shares in German group BMW plummeted 4.06% and Daimler dropped 1.79%, while French companies Renault and Peugeot retreated 1.01% and 1.58% respectively.
In London, FTSE 100 climbed 1.38%, supported by strong gains in the retail sector, while data showed that manufacturing activity in the U.K. fell to its lowest level since March 2009.
Next extended earlier gains, with shares surging 5.67%, after the retailer said it expects to make more money this year than previously indicated thanks to a jump in sales in the first half of 2012.
Oil and gas major Anglo American also held gains, with shares rallying 0.87%, while mining giants Rio Tinto and BHP Billiton climbed 1.27% and 1%.
Also Wednesday, a report by Markit research group showed that its manufacturing purchasing managers’ index for Spain rose to 42.3 in July from a reading of 41.1 the previous month.
Elsewhere, financial stocks remained broadly higher, led by the Royal Bank of Scotland, up 1.17%, and closely followed by HSBC Holdings, with shares climbing 0.79%, while Lloyds Banking and Barclays added 0.48% and 0.49% respectively.
Also Wednesday, a report by Markit research group showed that its manufacturing purchasing managers’ index for Spain rose to 42.3 in July from a reading of 41.1 the previous month.
Non-farm employment change in the U.S. rose more-than-expected last month, official data indicated on Wednesday.
In a report, payroll processing firm ADP said that non-farm employment rose to 163K, from 176K in the preceding month .
Analysts had expected non-farm employment to rise 120K last month.
Further depressing U.S. shares, U.S. construction spending fell last month, official data showed on Wednesday.
In a report, Census Bureau said that U.S. Construction Spending fell to a seasonally adjusted 0.4%, from 1.6% in the preceding month whose figure was revised up from 0.9%.
Analysts had expected U.S. Construction Spending to fall to 0.4% last month.
However, in the U.S. stocks traded mostly higher with the Dow up 0.36%, the broad based S&P 500 higher by 0.24% and the tech heavy Nasdaq off by 0.07%
Traders are awaiting the euro zone rate decision and press conference, as well as U.S. initial jobless claims on Thursday.
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