Investing.com - European stocks turned broadly higher on Wednesday, as the release of weak economic growth data out of the euro zone sparked fresh expectations for an additional rate cut by the European Central Bank.
During European morning trade, the EURO STOXX 50 rose 0.25%, France’s CAC 40 edged 0.20% higher, while Germany’s DAX 30 eased up 0.09%.
Preliminary data showed that euro zone gross domestic product fell 0.2% in the first quarter, more than the expected 0.1% fall, after a 0.6% decline in the previous quarter.
The data came after a separate report showed that Germany's GDP rose less-than-expected in the first quarter, adding 0.1% after a 0.7% decline in the previous quarter. Analysts had expected the GDP to rise 0.3% in the first quarter.
Year-on-year, Germany's GDP contracted by 1.7%, disappointing expectations for a 0.2% a rise, after an increase of 0.1% in the fourth quarter.
Financial stocks turned broadly higher, as French lenders BNP Paribas and Societe Generale jumped 0.98% and 2.43%, while Germany's Deutsche Bank rallied 1.52%.
Commerzbank continued to trend sharply lower on the other hand, down 14.60% after saying it plans to issue new shares at a more than 50% discount.
Peripheral lenders added to gains, with Spanish bank BBVA and Banco Santander surged 1.22% and 2.06% respectively, while Italy's Unicredit and Intesa Sanpaolo advanced 1.36% and 2.69%.
Elsewhere, ThyssenKrupp surged 2.58% after the German steelmaker reported second-quarter earnings of EUR241 million, beating analysts' estimates. The company also posted a first-half net loss of EUR621 million after a writedown of its Americas unit.
In London, FTSE 100 added 0.22%, after the Bank of England revised up its growth predictions for the second quarter.
U.K. lenders tracked their European counterparts higher, as shares in HSBC Holdings climbed 0.83% and the Royal Bank of Scotland jumped 1.75%, while Barclays and Lloyds Banking rallied 1.83% and 1.87%.
HSBC Holdings earlier said it will eliminate as many as 14,000 jobs as Chief Executive Officer Stuart Gulliver set out plans to cut an additional USD3 billion of costs.
Meanwhile, mining giants BHP Billiton and Rio Tinto remained on the downside, sliding 0.33% and 0.86%, while Anglo American tumbled 0.98%.
Adding to losses, Severn Trent plummeted 1.30% after rejecting an offer from Kuwait’s sovereign-wealth fund and a Canadian infrastructure investor that valued it at almost GBP5 billion.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.05% gain, S&P 500 futures signaled a 0.01% dip, while the Nasdaq 100 futures indicated a 0.05% rise.
Later in the day, the U.S. was to publish data on producer price inflation, industrial production, the capacity utilization rate and a report on manufacturing activity in New York State.
During European morning trade, the EURO STOXX 50 rose 0.25%, France’s CAC 40 edged 0.20% higher, while Germany’s DAX 30 eased up 0.09%.
Preliminary data showed that euro zone gross domestic product fell 0.2% in the first quarter, more than the expected 0.1% fall, after a 0.6% decline in the previous quarter.
The data came after a separate report showed that Germany's GDP rose less-than-expected in the first quarter, adding 0.1% after a 0.7% decline in the previous quarter. Analysts had expected the GDP to rise 0.3% in the first quarter.
Year-on-year, Germany's GDP contracted by 1.7%, disappointing expectations for a 0.2% a rise, after an increase of 0.1% in the fourth quarter.
Financial stocks turned broadly higher, as French lenders BNP Paribas and Societe Generale jumped 0.98% and 2.43%, while Germany's Deutsche Bank rallied 1.52%.
Commerzbank continued to trend sharply lower on the other hand, down 14.60% after saying it plans to issue new shares at a more than 50% discount.
Peripheral lenders added to gains, with Spanish bank BBVA and Banco Santander surged 1.22% and 2.06% respectively, while Italy's Unicredit and Intesa Sanpaolo advanced 1.36% and 2.69%.
Elsewhere, ThyssenKrupp surged 2.58% after the German steelmaker reported second-quarter earnings of EUR241 million, beating analysts' estimates. The company also posted a first-half net loss of EUR621 million after a writedown of its Americas unit.
In London, FTSE 100 added 0.22%, after the Bank of England revised up its growth predictions for the second quarter.
U.K. lenders tracked their European counterparts higher, as shares in HSBC Holdings climbed 0.83% and the Royal Bank of Scotland jumped 1.75%, while Barclays and Lloyds Banking rallied 1.83% and 1.87%.
HSBC Holdings earlier said it will eliminate as many as 14,000 jobs as Chief Executive Officer Stuart Gulliver set out plans to cut an additional USD3 billion of costs.
Meanwhile, mining giants BHP Billiton and Rio Tinto remained on the downside, sliding 0.33% and 0.86%, while Anglo American tumbled 0.98%.
Adding to losses, Severn Trent plummeted 1.30% after rejecting an offer from Kuwait’s sovereign-wealth fund and a Canadian infrastructure investor that valued it at almost GBP5 billion.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.05% gain, S&P 500 futures signaled a 0.01% dip, while the Nasdaq 100 futures indicated a 0.05% rise.
Later in the day, the U.S. was to publish data on producer price inflation, industrial production, the capacity utilization rate and a report on manufacturing activity in New York State.