European stocks remain higher after economic reports; Dax up 0.38%

Investing.com - European stocks remained higher on Wednesday, after the release of mixed economic reports out of the euro zone, as growing expectations for an upcoming rate cut by the European Central Bank continued to support equity markets.

During European afternoon trade, the EURO STOXX 50 climbed 0.70%, France’s CAC 40 advanced 0.87%, while Germany’s DAX 30 rose 0.38%.

Official data showed that factory orders in Germany surged by a seasonally adjusted 3.3% in September, easily surpassing expectations for a gain of 0.5%. Factory orders fell by 0.3% in August.

A separate report showed that retail sales in the euro zone declined by a seasonally adjusted 0.6% in September, compared to expectations for a 0.4% fall. Retail sales for August were revised down to a 0.5% gain from a previously reported increase of 0.7%.

The reports came after data last week showing that euro zone annual inflation fell to a four year low last month fuelled speculation that the ECB might cut rates in order to safeguard the economic recovery in the region.

Financial stocks remained broadly higher, as French lenders BNP Paribas and Societe Generale advanced 0.98% and 0.45%, while Germany's Deutsche Bank rallied 1.41%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander jumped 0.94% and 1.21% respectively, while Italy's Intesa Sanpaolo and Unicredit gained 0.47% and 1.56%.

Elsewhere, Alstom surged 3.88% after posting operating profit that exceeded estimates and saying it will seek to raise as much as EUR2 billion from asset sales.

Adding to gains, Adecco advanced 5.75% after the provider of temporary workers reported profit that beat estimates and predicted increasing demand for part-time labor in Europe.

In London, commodity-heavy FTSE 100 edged up 0.10%, still supported by gains in the mining sector, while data showed that manufacturing production in the U.K. rose more than expected in September.

Shares in Glencore Xstrata rose 0.13%, while mining giants BHP Billiton and Rio Tinto climbed 0.72% and 1.14% respectively.

Financial stocks also remained mostly higher, as Lloyds Banking advanced 0.71% and the Royal Bank of Scotland jumped 0.94%, while Barclays surged 3.18%. HSBC Holdings underperformed however, sliding 0.46%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.51% rise, S&P 500 futures signaled a 0.58% increase, while the Nasdaq 100 futures indicated a 0.45% gain.

Also Wednesday, Markit research group said Spain's services purchasing managers' index rose to 49.6 in October, from a reading of 49.0 the previous month, compared to expectations for the index to remain unchanged.