Investing.com – European shares closed mixed Wednesday as Mario Draghi, the president of the European Central Bank, stated that policy makers did not discuss slashing interest rates counteracting solid earnings from euro zone companies.
At the close of European trade, the EURO STOXX 50 closed down 0.14%, France's CAC 40 traded higher by 0.09% and Germany’s DAX dropped 0.24%. Meanwhile, in the U.K. the FTSE 100 gained 0.15%.
Depressing stocks, ECB Chief Mario Draghi stated that policymakers did not discuss an interest-rate cut at their monthly meeting earlier, when the bank left its benchmark interest rate unchanged at 1%, in a widely expected decision.
Draghi also refrained from pledging more liquidity boosting measures, saying that the bank’s long-term financing operations needed time to work
The comments came after an auction of Spanish government debt which met with solid investor demand but saw the country’s short-term borrowing costs rise sharply.
Spain sold the full targeted amount of EUR2.5 billion of government bonds in its first debt sale since being downgraded by Standard & Poor’s, but the yield on the country’s five-year bonds rose to 4.96% from 3.69%, while the yield on three-year bonds climbed to 4.03% from 2.61%.
Meanwhile, supporting equities, official data indicated that the number of people who filed for unemployment assistance last week fell by the most since May 2011.
The Department of Labor reported the number of individuals filing for initial jobless benefits in the week ending April 28 fell by 27,000 to a seasonally adjusted 365,000, beating expectations for a decline to 380,000.
The previous week’s figure was revised up to 392,000 from 388,000.
However, dampening sentiment, a separate report from the Institute of Supply Management showed that service sector activity in the U.S. slowed to the lowest level in six months in April.
The ISM reported its non-manufacturing purchasing managers index declined by 2.5 points to 53.5 in April from a reading of 56.0 in March.
Orthopedic product maker, Smith & Nephew climbed 4% after beating estimates.
James Fisher & Sons soared 8.3%, as the U.K. tanker owner reported a 20% increase in sales during the first four months of 2012.
Stocks are trading lower in the U.S. with the Dow off 0.26%, the S&P 500 down 0.38% and the tech heavy Nasdaq off by 0.77%
Traders are awaiting U.S. non farm payrolls and unemployment rate, as well as the Canadian Ivey PMI numbers Friday.
At the close of European trade, the EURO STOXX 50 closed down 0.14%, France's CAC 40 traded higher by 0.09% and Germany’s DAX dropped 0.24%. Meanwhile, in the U.K. the FTSE 100 gained 0.15%.
Depressing stocks, ECB Chief Mario Draghi stated that policymakers did not discuss an interest-rate cut at their monthly meeting earlier, when the bank left its benchmark interest rate unchanged at 1%, in a widely expected decision.
Draghi also refrained from pledging more liquidity boosting measures, saying that the bank’s long-term financing operations needed time to work
The comments came after an auction of Spanish government debt which met with solid investor demand but saw the country’s short-term borrowing costs rise sharply.
Spain sold the full targeted amount of EUR2.5 billion of government bonds in its first debt sale since being downgraded by Standard & Poor’s, but the yield on the country’s five-year bonds rose to 4.96% from 3.69%, while the yield on three-year bonds climbed to 4.03% from 2.61%.
Meanwhile, supporting equities, official data indicated that the number of people who filed for unemployment assistance last week fell by the most since May 2011.
The Department of Labor reported the number of individuals filing for initial jobless benefits in the week ending April 28 fell by 27,000 to a seasonally adjusted 365,000, beating expectations for a decline to 380,000.
The previous week’s figure was revised up to 392,000 from 388,000.
However, dampening sentiment, a separate report from the Institute of Supply Management showed that service sector activity in the U.S. slowed to the lowest level in six months in April.
The ISM reported its non-manufacturing purchasing managers index declined by 2.5 points to 53.5 in April from a reading of 56.0 in March.
Orthopedic product maker, Smith & Nephew climbed 4% after beating estimates.
James Fisher & Sons soared 8.3%, as the U.K. tanker owner reported a 20% increase in sales during the first four months of 2012.
Stocks are trading lower in the U.S. with the Dow off 0.26%, the S&P 500 down 0.38% and the tech heavy Nasdaq off by 0.77%
Traders are awaiting U.S. non farm payrolls and unemployment rate, as well as the Canadian Ivey PMI numbers Friday.