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European stocks decline ahead of ECB policy statement; Dax down 0.50%

Published 01/21/2015, 03:46 AM
Updated 01/21/2015, 03:46 AM
© Reuters.  European stocks lose ground as sentiment wanes ahead of ECB meeting

Investing.com - European stocks were mostly lower on Wednesday, as investors remained cautious ahead of the European Central Bank's highly anticipated policy statement due on Thursday.

During European morning trade, the EURO STOXX 50 slipped 0.22%, France’s CAC 40 fell 0.26%, while Germany’s DAX 30 dropped 0.50%.

European equities remained supported amid mounting expectations that the ECB will launch a government bond-buying program at its meeting on Thursday, in a bid to stave off the threat of deflation in the euro area.

Investors remained cautious however amid uncertainty over the outcome of Greek elections, due to be held on Sunday, with anti-bailout party Syriza leading in the polls.

Financial stocks were mixed, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) eased up 0.14% and 0.02%, while Deutsche Bank (XETRA:DBKGn) fell 0.28% and Commerzbank (XETRA:CBKG) jumped 1% in Germany.

Among peripheral lenders, Intesa Sanpaolo slipped 0.16% and Unicredit climbed 0.65% in Italy, while Spanish banks BBVA and Banco Santander lost 0.04% and 0.46%.

Elsewhere, ASML Holding (AMS:ASML) saw shares surge 4.23% after the Dutch chipmaker said first-quarter sales will beat estimates as the company expects orders for machines that produce chips for data-storage and information-processing devices to pick up.

In London, FTSE 100 advanced 0.55%, led by Pearson, up 2.67% after the publishing company's stock saw its "buy" rating reaffirmed by Kepler Capital Markets.

Financial stocks were also mostly higher, as Lloyds Banking (LONDON:LLOY) inched up 0.05% and Barclays added 0.18%, while HSBC Holdings (LONDON:HSBA) gained 0.85%. The Royal Bank of Scotland (LONDON:RBS) underperformed however, declining 0.60%.

Meanwhile, mining stocks were mixed. Shares in Rio Tinto and Bhp Billiton slipped 0.28% and 0.47%, while Fresnillo (LONDON:FRES) and Randgold Resources rose 0.27% and 0.34% respectively.

Bhp Billiton earlier announced that it plans to cut the number of its shale rigs in the U.S. by about 40% as declining oil prices fuel concerns over lower iron ore earnings.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.26% decline, S&P 500 futures signaled a 0.13% fall, while the Nasdaq 100 futures indicated a 0.16% loss.

Later in the day, the U.S. was to release data on building permits and housing starts.

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