Investing.com - European stocks opened higher on Wednesday, but gains were expected to remain limited as global growth concerns and caution ahead of the European Central Bank’s upcoming policy meeting weighed.
During European morning trade, the EURO STOXX 50 advanced 0.41%, France’s CAC 40 rose 0.35%, while Germany’s DAX 30 gained 0.45%.
Investors remained cautious after the International Monetary Fund downwardly revised its projection for global economic growth in 2016 to 3.1%, from the prior 3.2%, though expecting a rebound to 3.4% in 2017.
Market participants were also focusing on the outcome of Thursday’s ECB meeting to see if policymakers will step up easing measures to offset the fallout from the Brexit vote.
Financial stocks were mixed, as BNP Paribas (PA:BNPP) slipped 0.28% and Societe Generale (PA:SOGN) edged up 0.10% in France, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) declined 0.37% and 0.70%.
Among peripheral lenders, Intesa Sanpaolo (MI:ISP) gained 0.73% and Unicredit (MI:CRDI) retreated 0.36% in Italy, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) rallied 0.98% and 1.28% respectively.
Elsewhere, Bayer (DE:BAYGN) shares rose 0.24% even after Monsanto (NYSE:MON) called the German company’s $64 billion bid 'financially inadequate' amid speculation that the board will hold out for a $130 dollar a share offer.
In London, FTSE 100 added 0.20%, boosted by Johnson Matthey (LON:JMAT), whose shares jumped 1.24% after the specialty chemicals company said first quarter sales rose 6%.
Meanwhile, mining stocks were broadly lower on the commodity-heavy index. Shares in Rio Tinto (LON:RIO) tumbled 1.96% and BHP Billiton (LON:BLT) lost 2.25%, while rivals Glencore (LON:GLEN) and Anglo American (LON:AAL) plunged 4.35% and 5.33% respectively.
BHP Billiton announced earlier Wednesday that it missed its iron ore guidance by 3 million tons, due to supply disruptions at the Samarco mine in Brazil, where a dam burst last November.
Financial stocks added to losses, as Lloyds Banking Group PLC (LON:LLOY) dropped 0.49% and Barclays PLC (LON:BARC) declined 0.90%, while Royal Bank of Scotland Group PLC (LON:RBS) plummeted 1.39%. HSBC Holdings PLC (LON:HSBA) overperformed however, with shares advancing 1.26%.
In the U.S., equity markets pointed to a steady to higher open. The Dow Jones Industrial Average futures pointed to a 0.14% rise, S&P 500 futures a 0.07% gain, while the Nasdaq 100 futures indicated a 0.02% uptick.