Investing.com – European equities showed mixed trade on Thursday as markets digested the minutes from the last policy meeting of the Federal Reserve (Fed) and kept an eye on geopolitical issues.
Nearing midday trade in Europe, the benchmark Euro Stoxx 50 lost 0.36%, France’s CAC 40 fell 0.31% while Germany’s DAX 30 slipped 0.08%.
Minutes released on Wednesday after the European market close showed that Fed policymakers were increasingly split on the outlook for inflation and how it might affect the future pace of interest rate rises.
The minutes also revealed differences of opinion on how the winding down of bond purchases would affect monetary policy with some officials suggesting that the path of rate increases would be less steep while others saw no effect.
Market players were keeping an eye on international issues as U.S. President Donald Trump travelled to Poland to meet up the NATO allies.
This comes as the U.S. has pledged that it is “ready to use force” against North Korea to stop its nuclear program.
It is also ahead of the G20 summit in Hamburg, Germany on Friday and Saturday. German Chancellor Angela Merkel said she expects there to be “difficult discussions” even as her country’s Foreign Minister said he’s worried that Trump could “start a trade war with Europe”.
In a light day for data on the European economic front, German factory orders rose by just 1% in May, missing forecasts for a gain of 2.0%, although the rebound after the prior month’s decline bolstered hopes that April’s decrease was the result of transitory weakness.
The European Central Bank (ECB) will publish the minutes from its own policy meeting at 7:30AM ET (11:30GMT).
In company news, AB Foods (LON:ABF) led advancers on the Stoxx 600 with gains of nearly 5% as the British firm said strong performance in its clothing chain and a weaker sterling has improved its outlook.
On the downside, Sodexo (PA:EXHO) led decliners with losses of 6% as the French catering company cut its sales guidance.
Reckitt Benckiser Group PLC (DE:RB) was also off 1% after the German consumer goods giant also cut its forecast due to last month’s cyber-attack.
Meanwhile, oil prices regained ground on Thursday after an industry report on Wednesday showing a far larger than expected crude inventory drawdown.
Data from industry group The American Petroleum Institute late Wednesday showed that U.S. crude inventories fell by 5.8 million barrels, compared to expectations for a draw of just 1.6 million.
The Energy Information Administration was to release its inventory report at 11:00AM (15:00GMT) on Thursday, with analysts expecting a drawdown of 2.28 million barrels.
Both reports come one day later than usual because of this week’s Independence Day holiday.
European energy stocks traded mixed, as French oil and gas major Total SA (PA:TOTF) lost 0.29%, but Italy’s ENI (MI:ENI) and Norwegian rival Statoil (OL:STL) gained 0.30% and 0.73%, respectively.
Financial stocks were also mixed, as French lenders BNP Paribas (PA:BNPP) dropped 0.33% but Societe Generale (PA:SOGN) inched up 0.01% while Germany’s Deutsche Bank (DE:DBKGn) gained 0.89% and Commerzbank (DE:CBKG) traded up 1.15%.
Among peripheral lenders, Italian banks Intesa Sanpaolo (MI:ISP) and rival Unicredit (MI:CRDI) rose 0.14% and 1.14%, respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) fell 0.29% and 1.86%, respectively.
In London, the commodity-heavy FTSE 100 inched up 0.01%.
Shares in Glencore (LON:GLEN) edged forward 0.03%, Anglo American (LON:AAL) rose 0.81%, BHP Billiton (LON:BLT) gained 1.38% and Rio Tinto (LON:RIO) advanced 0.10%.
Energy stocks showed mixed signs, as BP (LON:BP) gained 0.27% but rival Royal Dutch Shell (LON:RDSa) lost 0.23%.
Financial stocks saw mixed trade, with shares in HSBC Holdings (LON:HSBA) down 0.28% and Royal Bank of Scotland (LON:RBS) up 1.64%, while Lloyds Banking (LON:LLOY) gained 0.32% and Barclays (LON:BARC) rose 0.51%.
In the U.S., stock futures pointed to a flat to lower open. The Dow Jones Industrial Average futures edged down 0.04%, S&P 500 futures slipped 0.10%, while the Nasdaq 100 futures fell 0.26%.