Euro stocks close mixed on bullish Spanish words; DAX up 0.17%

Investing.com - European stocks closed mixed Wednesday, as sentiment was boosted by comments from Spanish Prime Minister Mariano Rajoy, while U.S. markets traded lower after a two-day shutdown for Hurricane Sandy and weak economic data.

At the close European trade, the EURO STOXX 50 advanced 0.09%, France’s CAC 40 fell 0.29%, while Germany’s DAX 30 climbed 0.17%.
 
Casting a bearish aura, U.S. economic numbers missed estimates as  manufacturing activity in the Chicago area contracted for the second consecutive month in October, industry data showed on Wednesday.

In a report, market research group Kingsbury International said its Chicago purchasing managers’ index rose by 0.2 points to a seasonally adjusted 49.9 in October from a reading of 49.7 in September. 

Analysts had expected the index to improve by 1.3 points to 50.0 in October.

On the index, a reading above 50.0 indicates expansion, below indicates contraction.

Spain’s prime minister said his country needs the help of the European Union to meet its budget goals, but that EU progress on a banking union would allow leeway on making a formal request for aid.

Speaking in the Spanish Parliament, Mr. Rajoy also said that an agreement on direct bank recapitalization is getting closer and that such an agreement would improve market confidence.

Investors shrugged off official data showing that the unemployment rate in the euro zone climbed to a record 11.6% in September, from an upwardly revised 11.5% in August. 

Financial stocks remained mixed as France saw shares in BNP Paribas and Societe Generale tumble 1.09% and 0.72%, while Germany's Deutsche Bank and Commerzbank advanced 1.44% and 0.60% respectively. 

Meanwhile, Air France-KLM soared 8.71%, as Europe’s largest airline today reported a 27% increase in third- quarter operating profit to EUR506 million, as job cuts and improved summer traffic offset higher fuel costs. 

Lufthansa also added to gains, with shares rallying 6.78% after Europe’s second-largest airline posted a 6.2% increase in third-quarter operating profit to EUR648 million as a cost-savings program helped boost earnings. 

In London, FTSE 100 fell 0.80%. 

Financial stocks turned mixed, as shares in HSBC Holdings and Lloyds Banking rose 0.38% and 0.49% respectively, while the Royal Bank of Scotland fell 0.27% and Barclays plummeted 3.81% after posting a net loss for the third quarter, as earnings were hit by provisions connected to the inappropriate selling of insurance to clients and charges on the firm’s own debt. 

Elsewhere, oil and gas giant BP pushed higher, with shares jumping 1.28%, while Tullow Oil and Petrofac both surged 3.55% 

Mining giant BHP Billiton was also on the upside, with shares adding 0.25%, while Eurasian Natural Resources advanced 0.51% and steel manufacturer Evraz rallied 2.19%. 

In the U.S., equity markets traded lower with the Dow Jones down 0.27%, the S&P 500 off 0.19% and the tech heavy Nasdaq lower by 0.61%

Also Wednesday, official data showed that German retail sales rose 1.5% in September, the fastest pace since June 2011, easily beating expectations for a 0.3% increase. 

Investors are looking forward to the ADP employment numbers and the initial jobless claims from the U.S. on Thursday.