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European stocks mixed to lower ahead of German data; Dax down 0.17%

Published 07/16/2013, 03:42 AM
Updated 07/16/2013, 03:45 AM
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Investing.com - European stocks were mixed to lower on Tuesday, as markets eyed the release of German data later in the day, as well as Federal Reserve Chairman Ben Bernanke's testimony to Congress on Wednesday.

During European morning trade, the EURO STOXX 50 fell 0.27%, France’s CAC 40 shed 0.36%, while Germany’s DAX 30 slipped 0.17%.

Markets were jittery ahead of Bernanke's testimony on monetary policy amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.

Stocks rallied last week after Bernanke said the U.S. economy still needed monetary stimulus.

Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale declined 0.38% and 0.46%, while Germany's Deutsche Bank slid 0.30%.

Peripheral lenders added to losses, with Spanish banks BBVA and Banco Santander fell 0.19% and 0.20%, while Italy's Intesa Sanpaolo retreated 0.63%.

Elsewhere, Telecom Italia plummeted 3.14% after the Italian telephone company put on hold a network separation plan, saying a decision by the country’s communications regulator last week to cut access fees to the carrier’s network may "affect its feasibility."

On the upside, Deutsche Lufthansa rallied 2.12% as Goldman Sachs raised its recommendation for airline to "neutral" from "sell".

In London, commodity-heavy FTSE 100 added 0.19%, supported by sharp gains in mining stocks.

Mining giants BHP Billiton and Rio Tinto gained 0.91% and 2.12% respectively, while Anglo American jumped 0.96% and Eurasian Natural Resources surged 1.87%.

Rio Tinto said earlier that second-quarter iron-ore production jumped 7% from last year, beating analysts' estimates.

Meanwhile, financial stocks were mixed. Barclays climbed 0.60% and the Royal Bank of Scotland advanced 0.89%, while Lloyds Banking and HSBC Holdings lost 0.12% and 0.44%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.03% gain, S&P 500 futures signaled a 0.01% rise, while the Nasdaq 100 futures indicated a 0.06% increase.

Later in the day, the ZEW Institute was to release its closely watched report on German economic sentiment and the euro zone was to release official data on consumer price inflation.

The U.S. was also to release official data on consumer price inflation and a report on industrial production.


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