Investing.com – European stocks traded mixed on Tuesday as investors digested generally disappointing readings of gross domestic product (GDP) amid a slew of economic reports and while company earnings produced a positive balance.
Nearing midday in Europe, the benchmark Euro Stoxx 50 dropped 0.14%, France’s CAC 40 inched up 0.02%, and Germany’s DAX 30 slipped 0.03%.
On the economic front, fourth quarter GDP in the euro zone grew only 0.4% from the prior quarter, missing expectations for a 0.5% gain, while the year-on-year expansion came in at 1.7%, slightly below forecasts for a 1.8% rise.
Industrial production for the region gave a mixed reading in December with a 1.6% contraction from the prior month being slightly worse than the 1.5% decline expected, but year on year growth of 2.0% pushing past estimates for a 1.7% advance.
Germany, meanwhile, showed weaker than expected growth with GDP registering an annual expansion of only 1.2%, slowing from the prior 1.5% and missing expectations for a 1.7% rise, while the quarter-on-quarter growth of 0.4%, settled below forecasts for a 0.5% increase.
The euro zone’s number one economy also gave disappointing signs as the German ZEW economic sentiment dropped more than expected to a four month low.
In the U.K., inflation advanced to its highest level since June 2014 on the back of a weaker pound, although January’s increase of 1.8%, missed forecasts for a 1.9% gain. Core inflation, stripping out the increase in food and fuel costs, rose only 1.6%, also missing expectations for a 1.8% rise.
Markets also showed caution as they waited for clues on the future path of American monetary policy. Federal Reserve chair Janet Yellen will deliver her semi-annual monetary policy testimony to the Senate Banking Committee at 10:00AM ET (15:00GMT) Tuesday.
In company news, Aryzta (SIX:ARYN) soared more than 11% and led the Stoxx 600 higher after the Swiss food business announced the departure of both its chief executive officer and chief financial officer.
The second largest advancer on the index was Kindred Group (ST:KINDsdb). The online gambling firm jumped 9% after reported earnings.
Credit Suisse (SIX:CSGN) was also pocketing gains of around 3% as the Swiss bank reported strong asset inflows and increased margins and announced plans to cut 6,500 jobs as part of its continuing turnaround plan.
In negative earnings, Rolls Royce (LON:RR) fell nearly 6%, leading the decliners on the Stoxx 600, after the British engine-maker reported its biggest ever loss, a whopping £4.6 billion ($5.7 billion), due to sterling’s weakness and the company’s £671 million ($837 million) fine for bribery.
Meanwhile, oil prices moved higher on Tuesday, but remained in a familiar trading range as market players continued to weigh the prospect of production cuts by major crude-producing nations against a rise in U.S. drilling.
Energy stocks were trading higher, as French oil and gas major Total SA (PA:TOTF) gained 0.26%, Italy’s ENI (MI:ENI) advanced 0.83%, while Norwegian rival Statoil (OL:STL) rose 0.07%.
Financial stocks were showing mixed trade, as French lenders BNP Paribas (PA:BNPP) inched up 0.11% but Societe Generale (PA:SOGN) lost 0.60%, while Germany’s Deutsche Bank (DE:DBKGn) advanced 0.06% and Commerzbank (DE:CBKG) traded up 0.80%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) advanced 0.56% and Unicredit (MI:CRDI) gained 0.32%, while Spanish bank BBVA (MC:BBVA) traded up 1.16% and Banco Santander (MC:SAN) rose 0.29%
In London, the commodity-heavy FTSE 100 inched up 0.12%.
Shares in Glencore (LON:GLEN) rose 0.24%, Anglo American (LON:AAL) fell 0.32%, while BHP Billiton (LON:BLT) gained 1.27% and Rio Tinto (LON:RIO) fell 0.35%.
Energy stocks traded higher, as BP (LON:BP) and Royal Dutch Shell (LON:RDSa) gained 0.20% and 0.71%, respectively.
Financial stocks were higher as shares in HSBC Holdings (LON:HSBA) traded up 0.96% and the Royal Bank of Scotland (LON:RBS) rose 0.47%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) gained 0.56% and 0.93%, respectively.
In the U.S., Wall Street pointed a flat open. The Dow Jones Industrial Average futures inched down 0.03%, S&P 500 futures dropped 0.06%, while the Nasdaq 100 futures slipped 0.02%.