European stocks are turning in a mixed performance on Tuesday, as disappointing earnings reports offset hopes of further stimulus from major central banks. There are expectations that the ECB will unveil new measures this week to drive down the cost of financing. Investors also await policy announcement by the U.S. Federal Reserve and the all-important U.S. jobs report this week for near-term directional cues.
The Euro Stoxx 50 index of eurozone bluechip stocks is gaining 0.17 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is down 0.15 percent. Around Europe, the German DAX is up 0.45 percent, France's CAC 40 is gaining 0.1 percent and Switzerland's SMI is up marginally, while the U.K.'s FTSE 100 is declining 0.36 percent after Moody's Investors Service lowered its forecast for U.K. economic growth, citing the ongoing euro-zone debt crisis.
Bayer AG is climbing 2.5 percent in Frankfurt as the chemicals and pharmaceuticals giant reported about 34 percent decline in second-quarter profit, impacted mainly by special items, including certain litigation provisions.
Infineon Technologies is up a whopping 8.2 percent after the company announced spending cuts to cope with slowing chip demand.
BP Plc is tumbling 4.2 percent in London after the oil giant reported a significant loss in its second quarter, hurt by $3.45 billion charges related to impairments and Gulf of Mexico oil spill.
UBS AG is tumbling 4.9 percent in Zurich after the Swiss banking giant reported a 58 percent fall in second-quarter profit and issued a cautious outlook, citing challenging market conditions.
Vedanta Resources Plc is rallying 4.4 percent after the company reported significant growth in lead production and refined silver production at its operations in India for the first quarter ended June. Xstrata Plc is rising 1.3 percent after reporting a 7 percent rise in total mined copper production in the second quarter.
Unilever Plc is gaining 0.6 percent as the consumer goods firm priced a 1 billion dollar bond issue on the U.S. market.
In economic news, the eurozone unemployment rate remained unchanged at a record high in June, Eurostat reported today. The jobless rate for June was 11.2 percent, the same as seen in May. The rate matched economists' expectations.
Separate data from statistical office Insee showed that France's consumer spending increased at a slower-than-expected rate in June. Household spending edged up 0.1 percent month-over-month, following a 0.5 percent gain in each of the previous two months.
Elsewhere, Asian markets ended mostly higher despite caution ahead of monetary policy meetings by the European Central Bank and the U.S. Federal Reserve. Commodities such as crude and copper are edging higher and the Dow futures point to a higher start on Wall Street as investors await a slew of economic reports for clues on Fed action to bolster economic growth.
by RTT Staff Writer
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