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European stocks turn higher after German data; Fed, U.S. GDP ahead

Published 07/31/2013, 04:19 AM
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Investing.com - European stocks erased losses to trade modestly higher on Wednesday, following the release of robust German employment data, which helped ease concerns over the country’s economic outlook.

Markets were also jittery ahead of the Federal Reserve's upcoming policy statement due later in the day.

During European morning trade, the EURO STOXX 50 added 0.2%, France’s CAC 40 eased up 0.1%, while Germany’s DAX 30 was flat.

Official data earlier showed that the number of unemployed people in Germany fell for the second consecutive month in July, while the country’s jobless rate held steady.

Germany's Federal Statistics Office said the number of unemployed people fell by a seasonally adjusted 7,000 in July, compared to expectations for a decline of 4,000.

A separate report showed that retail sales declined 1.5% in June, disappointing expectations for a 0.4% rise, after an increase of 0.7% the previous month.

Markets now looked ahead to the Fed's upcoming policy statement due later in the day on hopes the central bank will offer more clues on when it could slow the pace of its monthly bond purchases.

In addition, traders are awaiting the release of U.S. growth figures for the second quarter scheduled for later in the session for indications of how the economic recovery is progressing.

In earnings news, French automaker Peugeot surged 7.3% after posting an operating loss of EUR65 million in the first half, better than expectations for a loss of EUR296 million.

Anheuser-Busch InBev reported second-quarter sales and earnings that exceeded analysts’ estimates, sending its shares soaring 6.7%.

Meanwhile, in London, FTSE 100 added 0.5% as the Bank of England was to announce its policy decision on Thursday.

In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a gain of 0.1%, S&P 500 futures signaled a 0.1% increase, while the Nasdaq 100 futures indicated a 0.1% advance.

Later in the day, reports on consumer price inflation and the unemployment rate in the euro zone were to be released.

The U.S. was to produce economic growth data, as well as reports on non-farm employment change and manufacturing activity in Chicago.

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