Investing.com - European stocks opened mixed on Wednesday, as British Prime Minister Theresa May’s Tuesday speech on Brexit continued to weigh, while upbeat earnings reports lent support.
During European morning trade, the EURO STOXX 50 dipped 0.07%, France’s CAC 40 slipped 0.25%, while Germany’s DAX 30 added 0.14%.
European equities weakened broadly after May confirmed on Tuesday that Britain will be leaving the single market when it exits the European Union, but would seek maximum access to it through a new trade agreement.
May also said the final Brexit deal will be put to parliament for a vote.
Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) tumbled 1.82% and 1.35%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) lost 1.07% and 0.83%.
Deutsche Bank was hit after saying earlier Wednesday that it expects a $1.2 billion impact on its fourth-quarter pretax profit after reaching a $7.2 billion settlement deal with U.S. authorities for toxic mortgage securities issues.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) declined 0.99% and 1.99% respectively. Spanish banks were steady, with Banco Santander (MC:SAN) and BBVA (MC:BBVA) inching up 0.03% and 0.06%.
In earnings news, Danish biotechnology company Novozymes A/S B (CO:NZYMb) beat market expectations and announced sales of 3.71 billion crowns in the fourth quarter, sending shares up 4.19%
The company also said it plans to cut 198 jobs.
In London, FTSE 100 edged up 0.15%, helped by British American Tobacco (LON:BATS), whose shares rallied 1.57% agreed to take full control of Reynolds American Inc (NYSE:RAI). in a $49.4 billion deal.
Burberry Group (LON:BRBY) added to gains, with shares up 0.25% after the luxury retailer reported better-than-expected earnings in its third quarter, with a 4% increase in retail revenue to £735 million.
Meanwhile, financial stocks were mixed. Shares in Lloyds Banking (LON:LLOY) rose 0.20% and HSBC Holdings (LON:HSBA) advanced 0.87%, while the Royal Bank of Scotland (LON:RBS) slipped 0.27% and Barclays (LON:BARC) tumbled 1.43%.
In the mining sector, stocks were also mixed. BHP Billiton (LON:BLT) fell 0.24% and Glencore (LON:GLEN) dropped 0.81%, while Rio Tinto (LON:RIO) added 0.21%.
In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a 0.09% rise, S&P 500 futures showed a 0.08% gain, while the Nasdaq 100 futures indicated a 0.12% increase.