Investing.com - European stocks closed higher Wednesday, despite disappointing economic data from the euro zone, as investors anticipate the conclusion of the Federal Reserve's policy-setting meeting later in the session.
At the close of European trade, the EURO STOXX 50 climbed 0.51%, France’s CAC 40 advanced 0.59%, while Germany’s DAX 30 rose 0.27%.
Sentiment remained under pressure after preliminary data showed that manufacturing activity in the euro zone contracted at a faster-rate-than-expected in October, shrinking for the 14th consecutive month.
Markit said that its preliminary manufacturing purchasing managers’ index fell to a seasonally adjusted 45.3 in October from a final reading of 46.1 in September. Analysts had expected the index to ease up to 46.6 in October.
A separate report showed that German business confidence in October deteriorated to the lowest level since March 2010.
The German research institute, Ifo said its Business Climate Index fell by 1.4 points to a seasonally adjusted 100.0 in October from a reading of 101.4 in September. Analysts had expected the index to ease up by 0.1 points to 101.5 in October.
Tech stocks were broadly higher, led by Germany's SAP, up 5.11% after the world’s biggest maker of business-management software said sales of new licenses, an indicator of future revenue, increased 12% to EUR1.03 billion.
In France, STMicroelectronics rallied 2.71% after saying it will cut costs by USD150 million a year by the end of 2013 and will temporarily close plants.
On the downside, Volvo plunged 3.32% after the truckmaker reported a 64% drop in third-quarter net income, as vehicle sales fell in South America and Asia.
Meanwhile, financial stocks were mixed, as France saw shares in BNP Paribas edged up 0.07% and Societe Generale drop 0.43%, while Germany's Deutsche Bank climbed 0.72%.
In London, commodity-heavy FTSE 100 added 0.29%, boosted by gains in mining and oil stocks.
Shares in mining giant Rio Tinto added 0.24%, erasing earlier losses, while rival BHP Billiton advanced 0.74%.
Copper producers Xstrata and Kazakhmys were also on the upside, with shares rallying 0.80% and 3.12% respectively, while oil and gas major Anglo American advanced 0.70%.
In the financial sector, shares remained lower. HSBC Holdings slipped 0.12% and the Royal Bank of Scotland fell 0.31%, while Lloyds Banking and Barclays retreated 0.87% and 1.30%.
Lifting U.S. shares, new home sales rose more-than-expected in September, hitting the highest level since April 2010, official data showed on Wednesday.
In a report, the U.S. Census Bureau said new home sales rose by 5.7% to a seasonally adjusted 389,000 units in September, beating expectations for a 3.2% increase to 385,000.
New home sales for August were revised down to 368,000 units from a previously reported 373,000.
In the U.S., equity markets traded mixed midsession with the Dow Jones up 0.08%, the S&P 500 lower by 0.05% and the tech heavy Nasdaq down 0.15%
Also Wednesday, Germany’s flash manufacturing purchasing managers' index fell to 45.7 in October, from a final reading of 47.4 in September, disappointing expectations for an improvement to 48.0.
Later in the day, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September.
At the close of European trade, the EURO STOXX 50 climbed 0.51%, France’s CAC 40 advanced 0.59%, while Germany’s DAX 30 rose 0.27%.
Sentiment remained under pressure after preliminary data showed that manufacturing activity in the euro zone contracted at a faster-rate-than-expected in October, shrinking for the 14th consecutive month.
Markit said that its preliminary manufacturing purchasing managers’ index fell to a seasonally adjusted 45.3 in October from a final reading of 46.1 in September. Analysts had expected the index to ease up to 46.6 in October.
A separate report showed that German business confidence in October deteriorated to the lowest level since March 2010.
The German research institute, Ifo said its Business Climate Index fell by 1.4 points to a seasonally adjusted 100.0 in October from a reading of 101.4 in September. Analysts had expected the index to ease up by 0.1 points to 101.5 in October.
Tech stocks were broadly higher, led by Germany's SAP, up 5.11% after the world’s biggest maker of business-management software said sales of new licenses, an indicator of future revenue, increased 12% to EUR1.03 billion.
In France, STMicroelectronics rallied 2.71% after saying it will cut costs by USD150 million a year by the end of 2013 and will temporarily close plants.
On the downside, Volvo plunged 3.32% after the truckmaker reported a 64% drop in third-quarter net income, as vehicle sales fell in South America and Asia.
Meanwhile, financial stocks were mixed, as France saw shares in BNP Paribas edged up 0.07% and Societe Generale drop 0.43%, while Germany's Deutsche Bank climbed 0.72%.
In London, commodity-heavy FTSE 100 added 0.29%, boosted by gains in mining and oil stocks.
Shares in mining giant Rio Tinto added 0.24%, erasing earlier losses, while rival BHP Billiton advanced 0.74%.
Copper producers Xstrata and Kazakhmys were also on the upside, with shares rallying 0.80% and 3.12% respectively, while oil and gas major Anglo American advanced 0.70%.
In the financial sector, shares remained lower. HSBC Holdings slipped 0.12% and the Royal Bank of Scotland fell 0.31%, while Lloyds Banking and Barclays retreated 0.87% and 1.30%.
Lifting U.S. shares, new home sales rose more-than-expected in September, hitting the highest level since April 2010, official data showed on Wednesday.
In a report, the U.S. Census Bureau said new home sales rose by 5.7% to a seasonally adjusted 389,000 units in September, beating expectations for a 3.2% increase to 385,000.
New home sales for August were revised down to 368,000 units from a previously reported 373,000.
In the U.S., equity markets traded mixed midsession with the Dow Jones up 0.08%, the S&P 500 lower by 0.05% and the tech heavy Nasdaq down 0.15%
Also Wednesday, Germany’s flash manufacturing purchasing managers' index fell to 45.7 in October, from a final reading of 47.4 in September, disappointing expectations for an improvement to 48.0.
Later in the day, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September.