Investing.com - European stocks were mixed on Monday, as investors remained cautious ahead of the European Central Bank's upcoming policy meeting this week amid growing expectations for fresh easing measures to be announced.
During European morning trade, the EURO STOXX 50 eased 0.07%, France’s CAC 40 edged down 0.17%, while Germany’s DAX 30 gained 0.44%.
European equities were boosted last week by mounting expectations that the ECB will launch a government bond-buying program at its meeting on Thursday, in a bid to stave off the threat of deflation in the euro area.
An interim ruling last Wednesday, which is likely to be accepted by the European Court of Justice, said the ECB was free to pursue a bond purchasing program without legal challenge.
Last Thursday, the Swiss National Bank abandoned its three-year old 1.20 per euro exchange rate cap in a shock move, signaling that it expects the ECB to act this week.
Financial stocks were mostly lower, as French lender Societe Generale (PARIS:SOGN) gained 0.41%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) declined 0.62% and 0.61%.
Among peripheral lenders, Italy's Intesa Sanpaolo fell 0.24% in Italy, while Spanish banks BBVA and Banco Santander retreated 0.30% and 0.61% respectively.
Elsewhere, Telefonica SA rallied 1.59% amid reports Hutchison Whampoa Limited (HK:0013) is considering a purchase of the Spanish company’s wireless unit O2.
In London, FTSE 100 rose 0.29%, led by Tesco, up 2.85% after the retailer announced that it plans to close a Homeplus store in Staines, U.K., in an additional move to cut costs.
Financial stocks were also mostly higher, as HSBC Holdings (LONDON:HSBA) climbed 0.50% and Barclays gained 0.58%, while the Royal Bank of Scotland (LONDON:RBS) saw shares advance 0.55%. Lloyds Banking (LONDON:LLOY) underperformed however, down 0.40%.
Meanwhile, mining stocks were mixed on the commodity-heavy index. Shares in Bhp Billiton slid 0.43% and Rio Tinto dropped 0.80%, while Glencore Xstrata (LONDON:GLEN) rose 0.26% and Fresnillo (LONDON:FRES) climbed 0.60%.
Oil companies moved lower on the other hand, with Royal Dutch Shell (LONDON:RDSa) down 0.29% and Tullow Oil (LONDON:TLW) sliding 0.37%, while BP (LONDON:BP) declined 0.62%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.28% fall, S&P 500 futures signaled a 0.28% decline, while the Nasdaq 100 futures indicated a 0.26% loss.