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European stocks mixed to higher ahead of earnings, Fed; Dax up 0.16%

Published 10/28/2013, 04:39 AM
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Investing.com - European stocks were mixed to higher on Monday, supported by speculation that the Federal Reserve will decide to postpone the scaling back of its bond-buying program, while investors eyed the release of fresh earnings reports.

During European morning trade, the EURO STOXX 50 inched up 0.05%, France’s CAC 40 eased 0.08%, while Germany’s DAX 30 added 0.16%.

Global equities strengthened as investors looked ahead to the Fed's upcoming policy meeting later in the week, amid expectations that the central bank will delay plans to start tapering stimulus until well into next year.

Data on Friday showed that an index of U.S. consumer sentiment was revised down to a 10-month low in October on concerns over the economic impact of the recent 16-day government shutdown.

Financial stocks were mostly higher, as French lenders BNP Paribas and Societe Generale gained 0.56% and 0.21%, while Germany's Deutsche Bank added 0.26%.

However, among peripheral lenders, Spanish banks Banco Santander and BBVA lost 0.06% and 0.60% respectively, while Intesa Sanpaolo edged up 0.06% and Unicredit eased 0.05% in Italy.

Elsewhere, ThyssenKrupp AG tumbled 1.38% following reports the German steelmaker may not be able to sell its plant in Brazil.

In London, commodity-heavy FTSE 100 edged up 0.07%, supported by gains in the mining sector.

Polymetal saw shares advance 0.40% and Glencore Xstrata gained 0.77%, while gold miner Randgold Resources jumped 1.89%.

Financial stocks were also mostly higher, as HSBC Holdings inched up 0.03% and Barclays rose 0.36%, while Lloyds Banking climbed 0.73% and the Royal Bank of Scotland surged 2.41%.

Meanwhile, TUI Travel Plc advanced 0.42% after the tour operator said it had to stop further development of its Tuscan resort, Castelfalfi. TUI has reportdly invested about EUR160 million in the project and wrote down almost half of it.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.22% gain, S&P 500 futures signaled a 0.20% rise, while the Nasdaq 100 futures indicated a 0.24% increase.

Later in the day, the U.S. was to release official data on industrial production, as well as a report on pending home sales.


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