European stocks mixed as debt worries persist; DAX down 0.06%

Investing.com - European stocks were mixed on Tuesday, as global growth concerns continued to weigh on market sentiment, while investors awaited the outcome of a key meeting of European Union finance ministers.

During European afternoon trade, the EURO STOXX 50 added 0.12%, France’s CAC 40 climbed 0.40%, while Germany’s DAX 30 dipped 0.06%.

Market sentiment weakened after the International Monetary Fund cut its global growth forecasts and warned of even slower expansion unless officials in the U.S. and Europe address threats to their economies.

The IMF said that the world economy will grow 3.3% this year, the slowest since the 2009 recession, and 3.6% next year, compared with July predictions of 3.5% in 2012 and 3.9% in 2013.

Investors also remained cautious amid uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.

Financial stocks turned mostly higher, as shares in French lenders Societe Generale and BNP Paribas added 0.61% and 0.28%, while Germany's Commerzbank rose 0.78%.

Italian banks added to gains, as shares in Intesa Sanpaolo jumped 1.11% and Unicredit gained 0.64%, while Spanish lenders remained lower however, with BBVA dropping 0.89% and Banco Santander declining 0.92%.

Telecom companies were also on the downside, as shares in Telefonica slid 0.67% and Telecom Italia tumbled 1.02%, while France Telecom dropped 0.30%.

In London, FTSE 100 fell 0.14%, after data showed that U.K. manufacturing production dropped more-than-expected in August, while the country's trade deficit widened more-than-anticipated.

U.K. lenders tracked their European counterparts higher, as shares in Barclays jumped 1.06% and the Royal Bank of Scotland climbed 0.43%, while Lloyds Banking and Barclays advanced 0.40% and 0.23%.

Mining stocks also turned broadly higher. Rio Tinto rallied 2.40% and BHP Billiton climbed 0.69%, while copper producers Xstrata and Kazakhmys surged 1.26% and 2.75% respectively.

In addition, oil and gas giant Anglo American extended earlier gains, with shares up 2.01%, while rival BP added 0.06%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.02% rise, S&P 500 futures signaled a 0.05% gain, while the Nasdaq 100 futures indicated a 0.12% loss.

Also Tuesday, European Central Bank President Mario Draghi earlier reiterated that governments cannot rely on the ECB to fix the crisis in the region and said that national reforms were vital.

Later in the day, German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders. Meanwhile, finance ministers from the European Union were to hold a day of talks in Brussels.