Investing.com - European stocks were mixed on Wednesday, as markets were jittery ahead of a highly anticipated vote on the U.S. debt ceiling later in the day.
During European morning trade, the EURO STOXX 50 eased 0.08%, France’s CAC 40 slipped 0.17%, while Germany’s DAX 30 inched up 0.06%.
Markets were eyeing U.S. budget negotiations after Republican leaders in the House of Representatives said they aim to pass on Wednesday a nearly four-month extension of the U.S. debt limit allowing the government to borrow enough to meet its obligations during that period.
Sentiment was hit on Tuesday, amid rumors some large German banks could be asked to split their investment banking operations.
Financial stocks were broadly lower, as shares in French lenders Societe Generale and BNP Paribas slid 0.57% and 0.89%, while Germany's Deutsche Bank and Commerzbank dropped 0.81% and 1.75% respectively.
Bloomberg reported earlier that Deutsche Bank will pay USD1.6 million to end a dispute with the Federal Energy Regulatory Commission that said a unit of the bank manipulated California’s power markets.
The German lender will also have to pay a civil penalty of USD1.5 million and USD172,645 plus interest to California’s grid operator, according to the FERC.
Peripheral lenders added to losses, with Italian banks Unicredit and Intesa Sanpaolo declining 0.09% and 1.46%, while Spain's Banco Santander and BBVA retreated 0.31% and 0.39%.
Elsewhere, Novartis gained 1.66% after saying Chairman Daniel Vasella will step down from the board after 17 years, and Bayer AG’s Joerg Reinhardt will take over as non-executive chairman.
In London, FTSE 100 rose 0.24%, as U.K. Prime Minister David Cameron was due to give Britons a straight referendum choice on whether to stay in the European Union or leave.
Unilever led gains, surging 2.28%, after the company posted fourth-quarter underlying sales growth of 7.8%, exceeding analysts' estimates.
Mining stocks were also on the upside, as Rio Tinto and BHP Billiton rose 0.05% and 1.26%, while copper producers Xstrata advanced 0.45%.
In the financial sector, stocks were mostly lower. The Royal Bank of Scotland fell 0.21% and HSBC Holdings dropped 0.37%, while Lloyds Banking tumbled 1%. Barclays overperformed on the other hand, with shares rising 0.19%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.09% loss, S&P 500 futures signaled a 0.20% fall, while the Nasdaq 100 futures indicated a 0.01% dip.
Later in the day, the U.S. was to release government data on crude oil stockpiles, while the World Economic Forum was to continue for a second day in Davos, Switzerland.