Investing.com - European stocks erased losses on Wednesday, despite disappointing economic data from the euro zone, as investors eyed the conclusion of the Federal Reserve's policy-setting meeting later in the day.
During European afternoon trade, the EURO STOXX 50 climbed 0.55%, France’s CAC 40 advanced 0.60%, while Germany’s DAX 30 rose 0.41%.
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%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.35% gain, S&P 500 futures signaled a 0.45% rise, while the Nasdaq 100 futures indicated a 0.47% increase.
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. The U.S. was to release official data on new home sales.
During European afternoon trade, the EURO STOXX 50 climbed 0.55%, France’s CAC 40 advanced 0.60%, while Germany’s DAX 30 rose 0.41%.
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%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.35% gain, S&P 500 futures signaled a 0.45% rise, while the Nasdaq 100 futures indicated a 0.47% increase.
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. The U.S. was to release official data on new home sales.