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European stocks mixed ahead of summit; DAX down 0.15%

Published 12/07/2011, 07:48 AM
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Investing.com - European stock markets were mixed on Wednesday, as investor confidence slightly weakened amid growing uncertainty over the outcome of this week’s crucial European Union summit.

During European afternoon trade, the EURO STOXX 50 fell 0.14%, France’s CAC 40 rose 0.30%, while Germany’s DAX 30 slipped 0.15%.

Investors were cautious after the Wall Street Journal reported that an unnamed senior German official expressed pessimism on the prospect of success at the two-day EU summit.

European leaders are due to discuss changes to EU treaties which would allow for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc.

Financial stocks were mixed as shares in BNP Paribas fell 0.39% and Societe Generale declined 0.44%, while German lender Deutsche Bank advanced 0.24%.

Meanwhile, Germany’s biggest retailer, Metro AG tumbled 2.89% after the stock was cut to “sell” from “neutral” at Citigroup. The stock also was downgraded at banks including Deutsche Bank and JPMorgan on Tuesday after Metro forecast declines in sales and earnings this year.

On the upside, Zodiac Aerospace, the world’s second-biggest maker of aircraft seats added 2.07% after the stock was raised to “outperform” from “neutral” at Exane BNP Paribas.

In London, commodity-heavy FTSE 100 declined 0.18%, as mining stocks pared earlier gains and after data showed that manufacturing production in the U.K. declined more-than-expected in October.

Shares in copper producer Xstrata were up 1.15% and Kazakhmys advanced 1.76% while Rio Tinto and Bhp Billiton climbed 1.51% and 1.01%.

U.K. lenders were mixed, with Lloyds Banking climbing 1.92% and Barclays rising 0.44%, while HSBC Holdings saw shares retreat 0.34%. 

Meanwhile, British construction company Carillion Plc jumped 3.33% after saying it expects its debt to drop below GBP100 million pounds by the end of the year, beating its earlier target of GBP125 million.

In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.19%, S&P 500 futures signaled a 0.13% increase, while the Nasdaq 100 futures indicated a 0.06% gain.

Also Wednesday, data showed that German industrial production rose 0.8% in October, beating expectations for a 0.3% increase. However, the country’s economy ministry said it expects production to remain muted in the months ahead.


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