European stocks mixed ahead of debt talks; DAX down 0.16%

Investing.com - European stock markets were mixed on Tuesday, as investors remained cautious ahead of Wednesday's European Union summit which investors hoped would result in a viable solution to the region's debt crisis.

During European morning trade, the EURO STOXX 50 eased down 0.45%, France’s CAC 40 dropped 0.56%, while Germany’s DAX 30 fell 0.16%.

On Sunday, euro zone officials neared a deal on bank recapitalization, while France and Germany advanced discussions on enhancing of the euro zone's bailout fund.

However, divisions over restructuring Greek debt remained and a final agreement was expected at a follow-up summit on Wednesday.

Italian-French chip maker, STMicroelectronics led losses with shares plummeting 7.16% after reporting a steep fall in third-quarter net profit and forecast fourth-quarter revenue below expectations, citing weak market conditions.

Drug maker Novartis was also on the downside, with shares tumbling 2.26% after said its earnings missed expectations. The company also announced a cost-cutting program involving the loss of around 2,000 jobs.

Meanwhile, the financial sector was mixed. French lenders BNP Paribas and Societe Generale saw shares drop 1.41% and 1.21% respectively while Italy's Intesa Sanpaolo was one of the day's top gainers with shares up 0.62%.

German Deutsche Bank also saw shares rise 0.16% after reporting a higher-than-expected third-quarter profit with a net income of EUR725 million.

In London, commodity-heavy FTSE 100 advanced 0.10%, boosted by gains in energy stocks and a sustained rise in commodity prices.

Shares in British Petroleum soared 3.95% after the oil giant reported a surge in third-quarter net profit and raised its target for asset sales to USD45 billion from USD30 billion.

Essar Energy wasn't far behind as well as natural gas firm Bg Group, with shares jumping 3.65% and 1.32% respectively.

U.K. lenders were mixed, with Barclays dropping 0.94% and HSBC Holdings falling 0.72%, while shares in the Royal Bank of Scotland advanced 0.44%.

Elsewhere, U.S. equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a drop of 0.12%, S&P 500 futures signaled a 0.10% fall, while the Nasdaq 100 futures indicated a 0.02% decline.

Later in the day, the U.S. was to publish industry data on house price inflation as well as a report on consumer confidence.

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