Forexpros – European stocks were higher during early European trade on Wednesday, as shares in Credit Suisse rallied on the back of stronger-than-expected earnings.
Gains were limited after Federal Reserve Chairman Ben Bernanke refrained from indicating if the U.S. central bank is considering near-term monetary stimulus measures.
During European morning trade, the EURO STOXX 50 rose 0.35%, France’s CAC 40 added 0.8%, while Germany’s DAX 30 advanced 0.3%.
In testimony on the economy and monetary policy to the Senate Banking Committee on Tuesday, Bernanke said growth had lost momentum in the first half of the year and added that progress on cutting the U.S. unemployment rate was “frustratingly” slow.
However, he refrained from indicating whether the Fed would embark on a third round of quantitative easing to stimulate the economy, but reiterated that the central bank was prepared to take further action to support the economic recovery if necessary.
Market participants now looked ahead to Bernanke’s return to Capitol Hill later Wednesday to testify to the House Financial Services Committee.
Worries about the U.S. economy have been dominating market sentiment in recent weeks, alongside the ongoing debt crisis in the euro zone and China’s cooling growth.
In earnings news, Swiss lender Credit Suisse saw shares rally 6.3% after reporting a 3.6% rise in net profit for the second quarter and said it aims to boost capital by CHF15.3 billion Swiss francs (USD15.6 billion) before year-end.
Shares in French automaker Peugeot rose 5%, bucking a recent downward trend.
On the downside, shares in Ericsson dropped 4% after the Swedish network-equipment firm reported a bigger-than-expected drop in second-quarter earnings.
Shares in Nokia continued their recent run of losses, dropping another 4.3%. The Finnish phone manufacturer reports earnings on Thursday.
Elsewhere, in London, the FTSE 100 was little changed as investors awaited the release of the minutes of the Bank of England’s most recent policy meeting, when policymakers voted to implement a further GBP50 billion of stimulus measures.
U.K. data on employment was also on tap.
Shares in BHP Billiton rose 0.85% after posting record quarterly iron ore production and guidance for a lift in Australian iron ore output of 5% in fiscal 2013.
Elsewhere, in the U.S., equity markets pointed to a mildly lower open, as investors awaited earnings from Bank of America and Bernanke’s return to Capitol Hill later Wednesday to testify to the House Financial Services Committee.
The Dow Jones Industrial Average futures pointed to a loss of 0.25%, S&P 500 futures signaled a drop of 0.3%, while the Nasdaq 100 futures indicated a 0.2% decline.
Later Wednesday, Bernanke was to testify in front of the Senate’s Financial Services Committee. In addition, the U.S. was to publish official data on building permits and housing starts.
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