Investing.com - European stocks remained mostly higher on Wednesday, after preliminary data showed that the euro zone economy returned to growth in the second quarter, exiting an 18-month recession, although concerns over the Federal Reserve's stimulus program weighed.
During European afternoon trade, the EURO STOXX 50 edged up 0.18%, France’s CAC 40 rose 0.34%, while Germany’s DAX 30 added 0.14%.
Eurostat said the euro zone’s economy expanded by 0.3% in the three months to June. Economists had expected quarter-on-quarter growth of 0.2%.
Earlier Wednesday preliminary data showed that France’s economy expanded 0.5% in the second quarter, following two consecutive quarters of contraction. Economists had forecast growth of 0.2% quarter-on-quarter.
A separate report showed that Germany’s economy expanded by 0.7% after growing 0.1% in the first quarter. Economists had forecast quarter-on-quarter growth of 0.6%.
However, investors remained cautious after U.S. retail sales data on Tuesday reinforced the view that the economic recovery is strong enough for the Federal Reserve to begin phasing out its asset purchase program later this year.
Financial stocks were mixed, as BNP Paribas edged down 0.08% and Societe Generale gained 0.63% in France, while Germany's Deutsche Bank tumbled 1.85%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA slipped 0.04% and 0.13% respectively, while Italy's Intesa Sanpaolo and Unicredit eased 0.07% and 0.21%.
Elsewhere, RWE AG plummeted 4.43%, even as Germany’s second largest utility said first-half profit rose 19% after arbitration made gas supply contracts with Russia’s OAO Gazprom more favorable.
In London, commodity-heavy FTSE 100 dipped 0.06%, even as official data showed that the U.K. unemployment rate remained unchanged at 7.8% in June, in line with expectations.
In addition, the minutes of the Bank of England’s July meeting showed that the decision to provide forward guidance on future rate increases was not unanimous.
Mining stocks remained broadly lower, as Rio Tinto plummeted 2.23%, while Polymetal and Eurasian Natural Resources plunged 1.99% and 2.56%.
Earlier in the day, Rio Tinto said it began an appeal against a decision to block a coal mine expansion in Australia’s New South Wales state.
Meanwhile, financial stocks remained higher, with shares in Barclays climbing 0.50% and the Royal Bank of Scotland gaining 0.42%, while HSBC Holdings added 0.30% and Lloyds Banking rallied 1.15%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.13% fall, S&P 500 futures signaled a 0.17% loss, while the Nasdaq 100 futures indicated a 0.01% dip.
Later in the day, the U.S. was to release data on produce price inflation.
During European afternoon trade, the EURO STOXX 50 edged up 0.18%, France’s CAC 40 rose 0.34%, while Germany’s DAX 30 added 0.14%.
Eurostat said the euro zone’s economy expanded by 0.3% in the three months to June. Economists had expected quarter-on-quarter growth of 0.2%.
Earlier Wednesday preliminary data showed that France’s economy expanded 0.5% in the second quarter, following two consecutive quarters of contraction. Economists had forecast growth of 0.2% quarter-on-quarter.
A separate report showed that Germany’s economy expanded by 0.7% after growing 0.1% in the first quarter. Economists had forecast quarter-on-quarter growth of 0.6%.
However, investors remained cautious after U.S. retail sales data on Tuesday reinforced the view that the economic recovery is strong enough for the Federal Reserve to begin phasing out its asset purchase program later this year.
Financial stocks were mixed, as BNP Paribas edged down 0.08% and Societe Generale gained 0.63% in France, while Germany's Deutsche Bank tumbled 1.85%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA slipped 0.04% and 0.13% respectively, while Italy's Intesa Sanpaolo and Unicredit eased 0.07% and 0.21%.
Elsewhere, RWE AG plummeted 4.43%, even as Germany’s second largest utility said first-half profit rose 19% after arbitration made gas supply contracts with Russia’s OAO Gazprom more favorable.
In London, commodity-heavy FTSE 100 dipped 0.06%, even as official data showed that the U.K. unemployment rate remained unchanged at 7.8% in June, in line with expectations.
In addition, the minutes of the Bank of England’s July meeting showed that the decision to provide forward guidance on future rate increases was not unanimous.
Mining stocks remained broadly lower, as Rio Tinto plummeted 2.23%, while Polymetal and Eurasian Natural Resources plunged 1.99% and 2.56%.
Earlier in the day, Rio Tinto said it began an appeal against a decision to block a coal mine expansion in Australia’s New South Wales state.
Meanwhile, financial stocks remained higher, with shares in Barclays climbing 0.50% and the Royal Bank of Scotland gaining 0.42%, while HSBC Holdings added 0.30% and Lloyds Banking rallied 1.15%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.13% fall, S&P 500 futures signaled a 0.17% loss, while the Nasdaq 100 futures indicated a 0.01% dip.
Later in the day, the U.S. was to release data on produce price inflation.