Investing.com – European equities registered timid gains on Wednesday as investors focused on earnings news flow and looked ahead to the European Central Bank’s (ECB) monetary policy decision the following day.
In midmorning European trade, the benchmark Euro Stoxx 50 inched up 0.06%, France’s CAC 40 rose 0.12% while Germany’s DAX 30 was unchanged.
Earnings news continued to be the main focal point for European equities on Wednesday in a session lacking in major economic data.
ASSA ABLOY (ST:ASSAb) tumbled around 8%, amid top decliners on the pan-European Stoxx 600, as the Swedish firm dedicated to door opening solutions reported a 7% in operating income, missing expectations for growth of 10.1%.
Qinetiq Group (LON:QQ) slumped 7% as the British defense technology group reported a slowdown in contracts since the start of the second quarter.
Volvo, AB ser. B (ST:VOLVb) also sank 5%, hitting a 2-month low, as the Swedish truck maker as weak margins hit its bottom line.
On the upside, shares in Georg Fischer AG (SIX:FIN) led advancers on the Stoxx 600, gaining more than 6%, as the Swiss industrial conglomerate reported a 12% increase in first half profit and said it expected full year sales to beat target.
Tele2 AB (ST:TEL2b) rose more than 5% after the Swedish telecom saw second quarter profit beat estimates and raised its full-year guidance.
Electrolux, AB ser. B (ST:ELUXb) also saw shares rise 4%, hitting record highs, as the Swedish household appliance maker registered a 21% in profit.
In other company news, McCormick (NYSE:MKC) announced that it would buy Reckitt Benckiser 's (LON:RB) food business for $4.2 billion.
On a day with no major economic reports, investors looked ahead to Thursday’s ECB policy announcement, with markets expecting now changes to rates or outright announcement of a reduction in the asset purchase program.
Despite the central bank’s quiet period, ECB policymaker Francois Villeroy de Galhau insisted Wednesday that accommodative policy was still necessary.
Meanwhile, oil prices were a bit lower in European trade on Wednesday, as investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products later in the global day.
Late Tuesday, the American Petroleum Institute said that U.S. oil inventories rose by 1.6 million barrels, compared to expectations for a draw of 3.5 million barrels.
The U.S. Energy Information Administration will release its official weekly oil supplies report at 10:30AM ET (14:30GMT) Wednesday, amid expectations for a draw of 3.2 million barrels.
European energy stocks traded mixed, as French oil and gas major Total SA (PA:TOTF) rose 0.16%, Italy’s ENI (MI:ENI) gained 0.14% but Norwegian rival Statoil (OL:STL) fell 0.30%.
Financial stocks were under pressure, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) fell 0.82% and 0.50%, respectively, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) traded down 0.35and 1.38%, respectively.
Among peripheral lenders, Italian banks Intesa Sanpaolo (MI:ISP) dropped 0.35% and rival Unicredit (MI:CRDI) lost 0.12% while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) fell 0.85% and 2.20%, respectively.
In London, the commodity-heavy FTSE 100 advanced 0.10%.
Shares in Glencore (LON:GLEN) inched up 0.03%, Anglo American (LON:AAL) traded down 0.44%, BHP Billiton (LON:BLT) lost 0.19% and Rio Tinto (LON:RIO) rose 0.10%.
Energy stocks were mostly flat, as BP (LON:BP) slipped 0.03% while rival Royal Dutch Shell (LON:RDSa) dropped 0.06%.
Financial stocks saw mixed trade, as shares in HSBC Holdings (LON:HSBA) rose 0.19%, Royal Bank of Scotland (LON:RBS) fell 0.80%, while Lloyds Banking (LON:LLOY) gained 0.14% and Barclays (LON:BARC) lost 0.10%.
In the U.S., stock futures pointed to a mostly flat open. The Dow Jones Industrial Average futures slipped 0.02%, S&P 500 futures edged forward 0.08%, while the Nasdaq 100 futures advanced 0.27%.