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European stocks mixed to lower despite Yellen hearing; Dax down 0.11%

Published 11/15/2013, 03:34 AM
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Investing.com - European stocks opened mixed to lower on Friday, as Thursday's downbeat economic data out of the euro zone continued to weigh, although dovish comments by Federal Reserve Chair nominee Janet Yellen lent support to global equities.

During European morning trade, the EURO STOXX 50 fell 0.22%, France’s CAC 40 edged down 0.17%, while Germany’s DAX 30 slipped 0.11%.

In a Senate hearing on Thursday, Yellen defended the Fed's stimulus measures to bolster growth and called efforts to boost hiring an "imperative". The comments added to expectations that the Fed's monthly bond purchases may remained unchanged for an extended period of time.

Meanwhile, investors remained cautious after data on Thursday showed that the euro zone economy expanded by 0.1% in the three months to September, slowing from the 0.3% growth achieved in the second quarter when the euro zone exited a recession. Economist had forecast quarter-on-quarter growth of 0.2%.

The euro zone economy contracted at an annual rate of 0.4% in the third quarter, worse than expectations for a 0.3% contraction, after shrinking at an annual rate of 0.6% in the previous quarter.

Financial stocks were mixed to lower, as French lenders BNP Paribas and Societe Generale added 0.29% and 0.85%, although Germany's Deutsche Bank slipped 0.29%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander declined 0.24% and 0.40% respectively, while Italy's Unicredit and Intesa Sanpaolo slid 0.34% and 0.37%.

Elsewhere, Vivendi surged 2.50% after posting better-than-estimated third-quarter profit and saying it plans to spin off its French phone carrier SFR by July 2014.

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

Shares in Glencore Xstrata rose 0.35%, while Vedanta Resources jumped 1.48% and precious metals miner Randgold Resources was the top performer on the index, rallying 1.56%

Financial stocks were also on the upside, as HSBC Holdings added 0.31% and Lloyds Banking rose 0.30%, while Barclays and the Royal Bank of Scotland advanced 0.66% and 1.01%.

Meanwhile, British Airways parent IAG saw shares tumble 1.29% even as it lifted its 2015 earnings target by 12.5% as discount arm Vueling boosted the group’s Spanish business.

In the U.S., equity markets pointed to a steady to higher open. The Dow Jones Industrial Average futures pointed to a 0.03% gain, S&P 500 futures signaled a 0.05% rise, while the Nasdaq 100 futures indicated a 0.16% increase.

Later in the day, the euro zone was to release data on consumer price inflation, while the U.S. was to produce data on manufacturing activity in the New York region, as well as reports on industrial production and import prices.


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