European stocks mixed amid E.Z. worries; DAX up 0.77%

Investing.com - European stock markets were mixed on Wednesday, as investors remained cautious amid concerns over a Greek vote on its latest bailout deal and ahead of the outcome of the Federal Reserve's policy-setting meeting.

During European afternoon trade, the EURO STOXX 50 rose 0.57%, France’s CAC 40 advanced 0.81%, while Germany’s DAX 30 climbed 0.77%.

Earlier in the day, Greece's Prime Minister George Papandreou won the backing of his cabinet to hold a referendum on a EUR130 billion bailout package and was due to meet with French and German leaders to discuss the planned vote later in the day.

If the deal is rejected, Greece could face bankruptcy and would potentially jeopardize its membership to the single currency bloc.

Investors were also jittery amid speculation that the Fed could revise down its forecasts for economic growth at the end of its two-day policy-setting meeting later Wednesday.

The financial sector remained broadly higher as shares in France's BNP Paribas soared 4.24% and Societe Generale jumped 2.61%, while German lender Deutsche Bank climbed 2.38%.

Italian banks extended earlier gains, with shares in Unicredit surging 5.05% and Intesa Sanpaolo advancing 3.04%, after Greece's referendum announcement saw the yield on 10-Italian government bonds soar to a euro-lifetime high, despite the European Central Bank's support for the Italian bond market.

Meanwhile, Credit Suisse tumbled 2.03%, after the Swiss lender announced on Tuesday that it will slash 1,500 more jobs as part of an overhaul that will see it refocus away from its traditional European bond trading business and towards high-growth markets in Asia and South America.

In London, FTSE 100 declined 0.39%, as led by U.K. banks as financial stocks trimmed earlier gains.

Barclays was still up 1.31%, while the Royal Bank of Scotland saw shares gain 0.77% and HSBC Holdings advanced 0.50%. Meanwhile, shares in Lloyds Banking plummeted 4.58% after the bank said that Chief Executive Antonio Horta-Osorio would take a temporary leave of absence from his duties due to illness.

Elsewhere, energy stocks were sharply higher as the commodity sector posted strong gains. Mining giants Rio Tinto and Bhp Billiton climbed 1.78% and 0.76%, while copper producers Xstrata and Kazakhmys advanced 2.50% and 3.89%.

Elsewhere, U.S. equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.33%, S&P 500 futures signaled a 0.41% increase, while the Nasdaq 100 futures indicated a 0.34% advance.

Earlier Wednesday, a report showed that U.S. private sector employment increased more-than-expected in October, as the service sector expanded.

Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 110,000 in October, beating expectations for an increase of 100,000.

The previous month’s figure was revised up to a gain of 116,000 from a previously reported increase of 91,000.