Investing.com - European stocks extended gains on Wednesday, after the release of positive German business climate data, while markets awaited the Federal Reserve's policy statement later in the day.
During European afternoon trade, the EURO STOXX 50 advanced 0.84%, France’s CAC 40 gained 0.80%, while Germany’s DAX 30 jumped 1.07%.
Data earlier showed that the Ifo German business climate index rose to a 20-month high of 109.5 in December, in line with forecasts and up from 109.3 in November.
But investors remained wary ahead of the outcome of the Fed’s final policy meeting of the year, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
However, many believe that the bank will wait until early next year to start rolling back stimulus, despite recent indications the U.S. economic recovery is deepening.
Financial stocks remained mostly higher, as French lenders BNP Paribas and Societe Generale gained 0.87% and 0.85%, although Germany's Deutsche Bank slid 0.55%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA climbed 0.81% and 1.88% respectively, while Italy's Unicredit and Intesa Sanpaolo jumped 0.92% and 1.10%.
Elsewhere, Elektrobit soared 13.81% after increasing its full-year profit forecast.
Meanwhile, Paris-based Technip plummeted 6.93% after saying it expects a weaker profit margin at its subsea division next year.
In London, FTSE 100 rose 0.31%, after data showed that the U.K. unemployment rate unexpectedly fell to a four-and-a-half year low of 7.4% in October.
Centrica led gains, up , after the utility company said it would sell its Texas gas-fired power stations to Blackstone for USD685 million in cash and return the proceeds to investors by extending its share buyback program.
Also on the upside, Bwin.Party Digital Entertainment rallied 5.27% after the online gambling company said its outlook for next year remained positive.
Mining stocks pared earlier gains, as shares in BHP Billiton climbed 0.64%, while Astrazeneca edged up 0.03% and Rio Tinto added 0.11%.
In the financial sector, stocks were also higher as the Royal Bank of Scotland rose 0.31% and HSBC Holdings added 0.33%, while Lloyds Banking advanced 0.36% and Barclays jumped 1.02%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.28% rise, S&P 500 futures signaled a 0.29% increase, while the Nasdaq 100 futures indicated a 0.28% gain.
Later in the day, the U.S. was to release data on building permits and housing starts.
During European afternoon trade, the EURO STOXX 50 advanced 0.84%, France’s CAC 40 gained 0.80%, while Germany’s DAX 30 jumped 1.07%.
Data earlier showed that the Ifo German business climate index rose to a 20-month high of 109.5 in December, in line with forecasts and up from 109.3 in November.
But investors remained wary ahead of the outcome of the Fed’s final policy meeting of the year, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
However, many believe that the bank will wait until early next year to start rolling back stimulus, despite recent indications the U.S. economic recovery is deepening.
Financial stocks remained mostly higher, as French lenders BNP Paribas and Societe Generale gained 0.87% and 0.85%, although Germany's Deutsche Bank slid 0.55%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA climbed 0.81% and 1.88% respectively, while Italy's Unicredit and Intesa Sanpaolo jumped 0.92% and 1.10%.
Elsewhere, Elektrobit soared 13.81% after increasing its full-year profit forecast.
Meanwhile, Paris-based Technip plummeted 6.93% after saying it expects a weaker profit margin at its subsea division next year.
In London, FTSE 100 rose 0.31%, after data showed that the U.K. unemployment rate unexpectedly fell to a four-and-a-half year low of 7.4% in October.
Centrica led gains, up , after the utility company said it would sell its Texas gas-fired power stations to Blackstone for USD685 million in cash and return the proceeds to investors by extending its share buyback program.
Also on the upside, Bwin.Party Digital Entertainment rallied 5.27% after the online gambling company said its outlook for next year remained positive.
Mining stocks pared earlier gains, as shares in BHP Billiton climbed 0.64%, while Astrazeneca edged up 0.03% and Rio Tinto added 0.11%.
In the financial sector, stocks were also higher as the Royal Bank of Scotland rose 0.31% and HSBC Holdings added 0.33%, while Lloyds Banking advanced 0.36% and Barclays jumped 1.02%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.28% rise, S&P 500 futures signaled a 0.29% increase, while the Nasdaq 100 futures indicated a 0.28% gain.
Later in the day, the U.S. was to release data on building permits and housing starts.