Investing.com - European stocks remained higher on Wednesday, despite disappointing euro zone data, as comments by Federal Reserve Chairwoman Janet Yellen continued to support and after upbeat Chinese trade data eased fears over a slowdown in the world’s second-largest economy.
During European afternoon trade, the EURO STOXX 50 gained 0.61%, France’s CAC 40 advanced 0.41%, while Germany’s DAX 30 climbed 0.81%.
Official data earlier showed that industrial production in the euro zone declined by 0.7% in December, compared to expectations for a 0.3% drop. Industrial production in November was revised to a 1.6% gain, from a previously reported increase of 1.8%.
In the U.S., Fed Chair Janet Yellen told the House Financial Services Committee that the central bank would continue to gradually reduce the pace of its asset purchase program.
In her first Congressional testimony since her appointment as Fed Chair, Ms. Yellen also reiterated that Fed plans to hold interest rates at zero “well past” the time the jobless rate falls below 6.5%.
Separately, data showed that Chinese exports jumped 10.6% in January from a year earlier, outstripping expectations for 2% gain, while imports jumped 10% and the trade surplus widened.
Financial stocks pushed sharply higher, as French lenders BNP Paribas and Societe Generale surged 2.19% and 5.82%, while Germany's Deutsche Bank jumped 0.97%.
Earlier in the day, Societe Generale reported fourth-quarter profit almost double analysts’ estimates, boosted by higher earnings at its French and Russian consumer-banking units.
Among peripheral lenders, Italy's Intesa Sanpaolo and Unicredit climbed 0.51% and 1.17% respectively, while Spanish bank BBVA added 0.13%.
Elsewhere, Heineken rallied 1.90% as the brewer said it expects sales to climb this year after reporting a decline in 2013 profit amid weak consumption in central and eastern Europe.
Adding to gains, Total climbed 0.53% after the oil producer reported a 19% decline in fourth-quarter profit and raised its dividend.
In London, FTSE 100 added 0.14%, after the Bank of England updated its forward guidance on interest rates, saying that it will not raise rates until the spare capacity in the U.K. economy has been fully absorbed.
Morrison Supermarkets continued to lead gains, up 2.52, following reports the founding family of the U.K. grocer has contacted private-equity funds such as CVC Capital Partners and Carlyle Group to weigh their interest in taking the retailer private.
Mining companies also remained higher, as shares in BHP Billiton jumped 1.20% and Glencore Xstrata advanced 1.74%, while rival Vedanta Resources surged 1.56%.
In the financial sector, as Lloyds Banking gained 0.44% and HSBC Holdings advanced 0.82%, while the Royal Bank of Scotland jumped 1.43%. Barclays continued to underperform on the other hand, down 0.61%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.03% uptick, S&P 500 futures signaled a 0.06% gain, while the Nasdaq 100 futures indicated a 0.14% rise.