Investing.com - European stocks remained higher on Wednesday, as downbeat German business climate data added to expectations for an upcoming rate cut by the European Central Bank.
During European afternoon trade, the EURO STOXX 50 climbed 0.62%, France’s CAC 40 advanced 0.71%, while Germany’s DAX 30 gained 0.50%.
Stocks gained ground amid mounting speculation over a rate cut by the European Central Bank after a report showed that the Ifo index of German business climate fell to a four month low of 104.4 in April from 106.7 in March.
The data came one day after a report showed that Germany’s manufacturing and service sectors contracted in April.
Sentiment also slightly improved as the yield on Italian 10-year bonds fell to 3.9% after President Giorgio Napolitano said a new prime minister would be named later in the day, ending two months of political deadlock.
Financial stocks turned mostly lower, as shares in French lenders Societe Generale and BNP Paribas retreated 0.71% and 0.93%, erasing earlier gains, while Germany's Deutsche Bank advanced 0.54%.
Peripheral lenders added to losses, with Spanish banks BBVA and Banco Santander slipping 0.14% and 0.18%, while Italy's Intesa Sanpaolo and Unicredit tumbled 1.40% and 1.48% respectively.
On the upside, French carmaker Peugeot soared 8.59% after reporting a 6.5% drop in first-quarter revenue to EUR13 billion but saying that revenue exceeded the EUR12.7 billion average estimate.
In London, FTSE 100 inched up 0.08%, as gains were capped after data showed that an index of U.K. realized sales fell unexpectedly in April.
Mining giants BHP Billiton and Rio Tinto remained sharply higher, surging 2.0.4% and 3.73% respectively, while rivals Fresnillo and Evraz rallied 3.98% and 4.46.
Copper producers Xstrata and Kazakhmys also remained on the upside, jumping 3.57% and 5.83%.
Meawhile, U.K. lenders were mixed, as shares in the Royal Bank of Scotland and HSBC Holdings added 0.14% and 0.70%, while Lloyds Banking and Barclays declined 0.16% and 1.61%.
Barclays announced earlier that its pretax profit fell 25% in the first quarter, missing analyst estimates.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.18% gain, S&P 500 futures signaled a 0.20% rise, while the Nasdaq 100 futures indicated a 0.23% increase.
Later in the day, the U.S. was to produce government data on durable goods orders.
During European afternoon trade, the EURO STOXX 50 climbed 0.62%, France’s CAC 40 advanced 0.71%, while Germany’s DAX 30 gained 0.50%.
Stocks gained ground amid mounting speculation over a rate cut by the European Central Bank after a report showed that the Ifo index of German business climate fell to a four month low of 104.4 in April from 106.7 in March.
The data came one day after a report showed that Germany’s manufacturing and service sectors contracted in April.
Sentiment also slightly improved as the yield on Italian 10-year bonds fell to 3.9% after President Giorgio Napolitano said a new prime minister would be named later in the day, ending two months of political deadlock.
Financial stocks turned mostly lower, as shares in French lenders Societe Generale and BNP Paribas retreated 0.71% and 0.93%, erasing earlier gains, while Germany's Deutsche Bank advanced 0.54%.
Peripheral lenders added to losses, with Spanish banks BBVA and Banco Santander slipping 0.14% and 0.18%, while Italy's Intesa Sanpaolo and Unicredit tumbled 1.40% and 1.48% respectively.
On the upside, French carmaker Peugeot soared 8.59% after reporting a 6.5% drop in first-quarter revenue to EUR13 billion but saying that revenue exceeded the EUR12.7 billion average estimate.
In London, FTSE 100 inched up 0.08%, as gains were capped after data showed that an index of U.K. realized sales fell unexpectedly in April.
Mining giants BHP Billiton and Rio Tinto remained sharply higher, surging 2.0.4% and 3.73% respectively, while rivals Fresnillo and Evraz rallied 3.98% and 4.46.
Copper producers Xstrata and Kazakhmys also remained on the upside, jumping 3.57% and 5.83%.
Meawhile, U.K. lenders were mixed, as shares in the Royal Bank of Scotland and HSBC Holdings added 0.14% and 0.70%, while Lloyds Banking and Barclays declined 0.16% and 1.61%.
Barclays announced earlier that its pretax profit fell 25% in the first quarter, missing analyst estimates.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.18% gain, S&P 500 futures signaled a 0.20% rise, while the Nasdaq 100 futures indicated a 0.23% increase.
Later in the day, the U.S. was to produce government data on durable goods orders.