Investing.com - European stocks trimmed gains on Thursday, after the release of downbeat economic growth data from the euro zone, although new hopes the Federal Reserve will maintain its stimulus program still supported equity markets.
During European afternoon trade, the EURO STOXX 50 climbed 0.57%, France’s CAC 40 gained 0.67%, while Germany’s DAX 30 advanced 0.79%.
Eurostat said the euro zone economy expanded by 0.1% in the three months to September, slowing from the 0.3% growth achieved in the second quarter when the euro zone exited a recession. Economist had forecast quarter-on-quarter growth of 0.2%.
The euro zone economy contracted at a annual rate of 0.4% in the third quarter, worse than expectations for a 0.3% contraction, after shrinking at a rate of 0.6% in the previous quarter.
Meanwhile, speculation over the course of U.S. monetary policy continued following dovish comments from Federal Reserve Chairman nominee Janet Yellen. In a statement released late Wednesday, Yellen said the job market and economy are "performing far short of their potential" and there is "more work to do" on recovery.
Financial stocks turned mostly lower. In France, BNP Paribas jumped 1.76% but Societe Generale tumbled 0.97%, while Germany's Deutsche Bank plummeted 1.63%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander declined 0.74% and 1.42% respectively, while Italy's Intesa Sanpaolo and Unicredit dove 1.88% and 2.93%.
Elsewhere, EADS added 0.21%, erasing earlier losses, after saying third-quarter earnings rose to EUR663 million from EUR526 million a year earlier, coming in slightly below analysts' estimates.
In London, FTSE 100 gained 0.51%, even as data showed that retail sales fell 0.7% in October and rose 1.8% on a year-over-year basis, disappointing market expectations.
U.K. lenders were mixed, as shares in Barclays and HSBC Holdings slipped 0.25% and 0.26%, while the Royal Bank of Scotland added 0.25% and Lloyds Banking rose 0.39%.
Among earnings, Burberry rallied 1.71% after saying third-quarter revenue advanced 17% to GBP1.03 billion.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.10% gain, S&P 500 futures signaled a 0.19% rise, while the Nasdaq 100 futures indicated a 0.24% fall.
Earlier Thursday, preliminary data showed that the French economy contracted by 0.1% in the third quarter, slowing from the 0.5% growth recorded in the second quarter. Economists had forecast growth of 0.1%.
Germany's economy grew by 0.3% in the third quarter, slowing from the 0.7% growth achieved in the second quarter. On a year-over-year basis, Germany’s economy grew 1.1%, beating forecasts for annual growth of 0.7%.
Later in the day, the U.S. was release official data on the trade balance, as well as the weekly report on initial jobless claims.
During European afternoon trade, the EURO STOXX 50 climbed 0.57%, France’s CAC 40 gained 0.67%, while Germany’s DAX 30 advanced 0.79%.
Eurostat said the euro zone economy expanded by 0.1% in the three months to September, slowing from the 0.3% growth achieved in the second quarter when the euro zone exited a recession. Economist had forecast quarter-on-quarter growth of 0.2%.
The euro zone economy contracted at a annual rate of 0.4% in the third quarter, worse than expectations for a 0.3% contraction, after shrinking at a rate of 0.6% in the previous quarter.
Meanwhile, speculation over the course of U.S. monetary policy continued following dovish comments from Federal Reserve Chairman nominee Janet Yellen. In a statement released late Wednesday, Yellen said the job market and economy are "performing far short of their potential" and there is "more work to do" on recovery.
Financial stocks turned mostly lower. In France, BNP Paribas jumped 1.76% but Societe Generale tumbled 0.97%, while Germany's Deutsche Bank plummeted 1.63%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander declined 0.74% and 1.42% respectively, while Italy's Intesa Sanpaolo and Unicredit dove 1.88% and 2.93%.
Elsewhere, EADS added 0.21%, erasing earlier losses, after saying third-quarter earnings rose to EUR663 million from EUR526 million a year earlier, coming in slightly below analysts' estimates.
In London, FTSE 100 gained 0.51%, even as data showed that retail sales fell 0.7% in October and rose 1.8% on a year-over-year basis, disappointing market expectations.
U.K. lenders were mixed, as shares in Barclays and HSBC Holdings slipped 0.25% and 0.26%, while the Royal Bank of Scotland added 0.25% and Lloyds Banking rose 0.39%.
Among earnings, Burberry rallied 1.71% after saying third-quarter revenue advanced 17% to GBP1.03 billion.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.10% gain, S&P 500 futures signaled a 0.19% rise, while the Nasdaq 100 futures indicated a 0.24% fall.
Earlier Thursday, preliminary data showed that the French economy contracted by 0.1% in the third quarter, slowing from the 0.5% growth recorded in the second quarter. Economists had forecast growth of 0.1%.
Germany's economy grew by 0.3% in the third quarter, slowing from the 0.7% growth achieved in the second quarter. On a year-over-year basis, Germany’s economy grew 1.1%, beating forecasts for annual growth of 0.7%.
Later in the day, the U.S. was release official data on the trade balance, as well as the weekly report on initial jobless claims.