European stocks mixed after Fed comments, ECB; DAX up 0.09%

Investing.com - European stock markets were mixed on Thursday, as investors remained cautious following comments by Federal Reserve Chairman Ben Bernanke and after the European Central Bank’s loan operation.

During European morning trade, the EURO STOXX 50 edged down 0.04%, France’s CAC 40 fell 0.22%, while Germany’s DAX 30 eased up 0.09%.

In testimony to Congress on Wednesday, Bernanke acknowledged the recent improvement in the labor market and said that higher oil prices could push up inflation. However, Bernanke also said the central bank was prepared to adjust the balance sheet “as appropriate” to support the economic recovery.

Meanwhile, markets remained jittery after the ECB allotted EUR529.5 billion in three-year loans to 800 lenders in its second long-term refinancing operation on Wednesday, as concerns over the long-term effectiveness of the liquidity boost weighed.

Financial stocks were broadly lower as shares in French lenders Societe Generale and BNP Paribas declined 1.20% and 0.22%, while Germany’s Deutsche Bank and Commerzbank retreated 0.22% and 1.54% respectively.

Vivendi also added to losses, with shares plummeting 6.95% after the owner of the world’s largest music and video-game companies predicted that profit will not grow until 2014 as Iliad SA’s entry into the mobile-phone market puts pressure on its SFR wireless unit.

On the upside, Veolia Environnement jumped 4.39% although the company reported a full-year net loss of EUR490 million, wider than estimates.

In London, FTSE 100 rose 0.24%, after data showed that U.K. house prices rose more-than-expected in February, increasing for the first time in three months.

U.K. lenders were mixed. Shares in Barclays rose 0.36%, HSBC Holdings added 0.17% and Lloyds Banking advanced 0.27%, while the Royal Bank of Scotland slipped 0.36%.

Mining giants Rio Tinto and Bhp Billiton retreated 0.26% and 0.13%, while copper producer Xstrata rose 0.23%.

Elsewhere, Cable & Wireless Worldwide surged 18.22% after Tata Communications Ltd. said it may make a cash offer for the company and decide on a transaction by the end of the month.

In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a rise of 0.02%, S&P 500 futures signaled a 0.03% loss, while the Nasdaq 100 futures indicated a 0.13% gain.

Also Thursday, data showed that manufacturing activity in the euro zone remained unchanged in February, in line with expectations.

Later in the day, the U.S. was to release government data on unemployment claims, while the Institute for Supply Management was to produce a report on manufacturing activity. In addition, Ben Bernanke was due to testify for a second day before Congress.