Investing.com - European stocks held gains on Tuesday, after the release of globally tepid service sector data from the euro zone, while markets still awaited the European Central Bank's upcoming policy meeting.
During European afternoon trade, the DJ Euro Stoxx 50 rose 0.35%, France’s CAC 40 advanced 0.61%, while Germany’s DAX gained 0.60%.
Data showed that Italy’s services purchasing managers index slowed to 52.8 in July from 53.9 in June. Economists had expected a reading of 54.0.
Service sector activity in German and Spain grew last month, while the expansion in the French service sector remained marginal.
The euro zone’s services PMI came in at 54.2, up from 52.2 in June, but slowing slightly from a preliminary reading of 54.4.
The data added to the view that the recovery in the euro zone is losing momentum as investors looked ahead to the outcome of the European Central Bank’s monetary policy meeting on Thursday.
Financial stocks were mixed, as BNP Paribas (PARIS:BNPP) dipped 0.08% and Societe Generale (PARIS:SOGN) gained 0.45% in France, while Germany's Commerzbank (XETRA:CBKG) tumbled 1.31%.
Among peripheral lenders, Intesa Sanpaolo (MILAN:ISP) dropped 0.74% and Unicredit (MILAN:CRDI) jumped 1.14% in Italy, while BBVA (MADRID:BBVA) slipped 0.25% and Banco Santander (MADRID:SAN) edged up 0.07%.
Elsewhere, Telefonica (MADRID:TEF) plummeted 1.50% after the Spanish phone company offered to buy Vivendi (PARIS:VIV)'s Brazilian Internet-provider unit GVT for €6.7 billion.
In London, FTSE 100 rose 0.36%, still supported by Aggreko (LONDON:AGGK), up 2.24%, after temporary power-and-temperature control group reported a 10% fall in first-half 2014 pretax profit, but said it still expects the full-year underlying profit to be at similar levels to 2013.
Financial stocks turned mixed, as the Royal Bank of Scotland (LONDON:RBS) edged down 0.11% and Barclays (LONDON:BARC) declined 0.56%, while Lloyds Banking (LONDON:LLOY) added 0.10% and HSBC Holdings (LONDON:HSBA) advanced 0.74%.
Barclays Chief Executive Officer Stuart Gulliver earlier said strengthening economic growth and rising interest rates should help bolster revenue in 2015. The comments came after the U.K. lender reported weaker first-half profit.
On the downside, Intercontinental (LONDON:IHG) saw shares plunge 3.78% after the hotel operator said first-half profit dropped 8% due to a decline in revenue.
Also in the U.K., Markit said the services PMI jumped to an eight-month high of 59.1 last month from a reading of 57.7 in June. Economists had expected the index to tick up to 57.9.
In the U.S., equity markets pointed to a lower open. The Dow 30 futures pointed to a 0.09% loss, S&P 500 futures signaled a 0.16% fall, while the Nasdaq 100 futures indicated a 0.15% slip.
Later in the day, the U.S. was to publish data on factory orders, while the Institute of Supply Management was to release data on service sector growth.