Investing.com - European stock markets were mostly higher on Wednesday, as encouraging euro zone private sector data for January offset a report showing a sharp fall in retail sales in the region in December.
During European afternoon trade, the EURO STOXX 50 inched up 0.1%, France’s CAC 40 advanced 0.2%, while Germany’s DAX 30 was little changed. Elsewhere, Spain’s IBEX 35 rose 0.3% while Italy’s FTSE MIB index gained 0.45%.
Data released earlier showed that the euro zone's private sector posted its strongest growth in more than two-and-a half years in January.
Markit said the final reading of the euro zone composite output index came in at 52.9 in January, slightly lower than the preliminary estimate for 53.2, but up from 52.1 in December.
A separate report showed that euro zone retail sales fell at the fastest rate since May 2011 in December. Retail sales were down 1.6% from November Eurostat said and fell 1% on year-over-year basis. Market expectations had been for a 0.5% monthly decline and a 1.5% annual gain.
In earnings news, shares of Swatch rallied 4.3% after the Swiss watchmaker reported better-than-expected full-year earnings for 2013 and forecast healthy sales growth as demand recovers in key markets like China.
On the downside, Syngenta shares dropped 4.1% after the Swiss agribusiness firm reported lower-than-expected full-year earnings and outlined plans to cut costs.
Meanwhile, in London, the FTSE 100 picked up 0.3% after data on Wednesday showed that activity in the U.K.’s dominant service sector slowed unexpectedly in January, but growth remained solid, indicating that the economic recovery is on track.
RSA Insurance jumped 3.65% after the insurer appointed former Royal Bank of Scotland boss Stephen Hester as its new CEO.
Hargreaves Lansdown plunged 6.4% after the U.K.’s biggest investment broker reported disappointing quarterly earnings.
Across the Atlantic, U.S. equity markets pointed to a mildly lower open. The Dow Jones Industrial Average futures pointed to a loss of 0.35%, S&P 500 futures signaled a 0.5% decline, while the Nasdaq 100 futures indicated a drop of 0.4%.
Investors looked ahead to key U.S. economic data later in the day for further indications on the strength of the economy and the future course of monetary policy.
The U.S. is to release the ADP report on private sector job creation, which leads the government’s highly-anticipated nonfarm payrolls report by two days, while the ISM is to publish a report service sector activity.