Investing.com - European stocks were mixed in choppy trade on Tuesday, as losses in financial stocks weighed while investors eyed the European Central Bank’s policy meeting this week, amid speculation the central bank may announce fresh easing measures.
During European morning trade, the EURO STOXX 50 inched down 0.01%, France’s CAC 40 fell 0.18%, while Germany’s DAX 30 rose 0.31%.
Markets were eyeing the European Central Bank's policy meeting on Thursday, after ECB President Mario Draghi pledged last week to do whatever was necessary to prevent the euro zone from collapsing.
Draghi's remarks fueled expectations that the ECB may soon reactivate its bond-buying program to help cut Spanish and Italian borrowing costs. Investors remained cautious however, amid concerns that the bank could disappoint market expectations.
Market participants were also looking ahead to the outcome of the Federal Reserve’s policy setting meeting on Wednesday, amid speculation over whether the bank will hint at further easing measures.
Financial stocks were broadly lower, as shares in French lenders BNP Paribas and Societe Generale tumbled 1.92% and 1.55%, while Germany’s Deutsche Bank declined 1.73%, after announcing that earnings dropped 46% in the second quarter due to the effects of the euro zone debt crisis on investment banking activity.
Swiss bank UBS plunged 5.22% after saying that net profit shrank to CHF425 million from CHF1 billion on sharply lower trading revenue and a drop in commissions and fees from clients.
Elsewhere, France-based aerospace supplier Safran dropped 0.67%, although it reported a 30% jump in net profit in the first half of 2012, boosted by rising deliveries of commercial-jet engines and acquisitions.
The company also reaffirmed its full-year earnings guidance, with a slight upward revision to the revenue outlook.
In London, FTSE 100 eased 0.10%, after data showed that consumer confidence in the U.K. deteriorated in July.
Vedanta Resources led gains, with shares up 1.59%, while rival mining groups BHP Billiton and Rio Tinto climbed 0.56% and 0.54% respectively.
Oil and gas major also added to gains, with shares rallying 0.65%, while BP tumbled 3.31% after the company reported a loss in the second quarter after writing down the value of U.S. assets and as production dropped.
Also on the upside, Vodafone gained 1.02%, following reports the phone company marked its GBP1.04 billion takeover of Cable & Wireless Worldwide by ousting the firm’s chief executive, Gavin Darby, for the second time.
Elsewhere, U.K. lenders tracked their European counterparts lower.
Shares in Barclays plunged 2.27% and the Royal Bank of Scotland declined 1.19%, while HSBC Holdings dropped 0.65% and Lloyds Banking eased 0.03%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.25% increase, S&P 500 futures signaled a 0.19% rise, while the Nasdaq 100 futures indicated a 0.31% gain.
Also Tuesday, official data showed that German retail sales fell unexpectedly by 0.1% in June, after a 0.3% decline the previous month, while a separate report showed that French consumer spending rose 0.1% in June, disappointing expectations for a 0.2% increase.
Germany’s unemployment rate remained unchanged at 6.8% in June, in line with expectations.
Later in the day, the euro zone was to release preliminary data on consumer price inflation.
The U.S. was to release industry data on house price inflation, a report on consumer confidence and data on manufacturing activity in the Chicago area.
During European morning trade, the EURO STOXX 50 inched down 0.01%, France’s CAC 40 fell 0.18%, while Germany’s DAX 30 rose 0.31%.
Markets were eyeing the European Central Bank's policy meeting on Thursday, after ECB President Mario Draghi pledged last week to do whatever was necessary to prevent the euro zone from collapsing.
Draghi's remarks fueled expectations that the ECB may soon reactivate its bond-buying program to help cut Spanish and Italian borrowing costs. Investors remained cautious however, amid concerns that the bank could disappoint market expectations.
Market participants were also looking ahead to the outcome of the Federal Reserve’s policy setting meeting on Wednesday, amid speculation over whether the bank will hint at further easing measures.
Financial stocks were broadly lower, as shares in French lenders BNP Paribas and Societe Generale tumbled 1.92% and 1.55%, while Germany’s Deutsche Bank declined 1.73%, after announcing that earnings dropped 46% in the second quarter due to the effects of the euro zone debt crisis on investment banking activity.
Swiss bank UBS plunged 5.22% after saying that net profit shrank to CHF425 million from CHF1 billion on sharply lower trading revenue and a drop in commissions and fees from clients.
Elsewhere, France-based aerospace supplier Safran dropped 0.67%, although it reported a 30% jump in net profit in the first half of 2012, boosted by rising deliveries of commercial-jet engines and acquisitions.
The company also reaffirmed its full-year earnings guidance, with a slight upward revision to the revenue outlook.
In London, FTSE 100 eased 0.10%, after data showed that consumer confidence in the U.K. deteriorated in July.
Vedanta Resources led gains, with shares up 1.59%, while rival mining groups BHP Billiton and Rio Tinto climbed 0.56% and 0.54% respectively.
Oil and gas major also added to gains, with shares rallying 0.65%, while BP tumbled 3.31% after the company reported a loss in the second quarter after writing down the value of U.S. assets and as production dropped.
Also on the upside, Vodafone gained 1.02%, following reports the phone company marked its GBP1.04 billion takeover of Cable & Wireless Worldwide by ousting the firm’s chief executive, Gavin Darby, for the second time.
Elsewhere, U.K. lenders tracked their European counterparts lower.
Shares in Barclays plunged 2.27% and the Royal Bank of Scotland declined 1.19%, while HSBC Holdings dropped 0.65% and Lloyds Banking eased 0.03%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.25% increase, S&P 500 futures signaled a 0.19% rise, while the Nasdaq 100 futures indicated a 0.31% gain.
Also Tuesday, official data showed that German retail sales fell unexpectedly by 0.1% in June, after a 0.3% decline the previous month, while a separate report showed that French consumer spending rose 0.1% in June, disappointing expectations for a 0.2% increase.
Germany’s unemployment rate remained unchanged at 6.8% in June, in line with expectations.
Later in the day, the euro zone was to release preliminary data on consumer price inflation.
The U.S. was to release industry data on house price inflation, a report on consumer confidence and data on manufacturing activity in the Chicago area.