Investing.com - European stocks were mostly higher on Wednesday, boosted by the financial sector and as upbeat Chinese manufacturing data lent support to market sentiment while investors continued to focus on discussions over Greek bailout funds.
During European morning trade, the EURO STOXX 50 rose 0.34%, France’s CAC 40 climbed 0.58%, while Germany’s DAX 30 added 0.16%.
Sentiment was boosted after data earlier showed that manufacturing activity in China swung back into expansion territory last month. China's manufacturing purchasing managers' index rose to 50.1 in March from a reading of 49.9 the previous month, confounding expectations for a slip to 49.7.
Investors remained cautious however amid concerns over whether Greece can reach a compromise with its creditors in time to unlock more bailout funds before it runs out of cash in three weeks, as negotiations over economic reforms dragged on.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) rallied 1.04% and 1.36%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) gained 0.45% and 1.33%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) advanced 0.63% and 1.30% respectively, while Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) rose 0.17% and slipped 0.36%.
In London, FTSE 100 rose 0.39%, as U.K. lenders tracked their European counterparts sharply higher.
Shares in HSBC Holdings (LONDON:HSBA) gained 0.66% and the Royal Bank of Scotland (LONDON:RBS) jumped 1.35%, while Lloyds Banking (LONDON:LLOY) rallied 1.38% and Barclays (LONDON:BARC) surged 2.35%.
Glaxosmithkline (LONDON:GSK) added to gains, with shares climbing 1.60% following news the drugmaker's venture arm SR One joined a syndicate backing a big midstage study of a new kidney drug developed by Montreal-based Thrasos Therapeutics.
Meanwhile, mining stocks were broadly lower as Glencore Xstrata (LONDON:GLEN) dropped 0.68% and Bhp Billiton (LONDON:BLT) retreated 0.86%, while Antofagasta (LONDON:ANTO) tumbled 1.50%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.30% fall, S&P 500 futures signaled a 0.39% decline, while the Nasdaq 100 futures indicated a 0.36% loss.
Later in the day, the U.S. was to release the ADP nonfarm payrolls report, while the Institute of Supply Management was to release data on manufacturing activity.