European stocks remain mixed ahead of U.S. data; Dax eases up 0.1%

Investing.com - European stock markets were mixed in rangebound trade during European afternoon hours on Wednesday, as investors shifted their focus to a number of corporate earnings reports, while awaiting key U.S. housing data.  

During European afternoon trade, the EURO STOXX 50 dipped 0.2%, France’s CAC 40 eased down 0.25%, while Germany’s DAX 30 tacked on 0.1%.

Investors were hesitant to extend the previous session’s strong rally as focus shifted back to corporate earnings reports.

In Frankfurt, Deutsche Lufthansa saw shares tumble 4.7% after saying it will suspend its dividend for the first time since 2010 to preserve cash.

Meanwhile, Dutch telecom firm Royal KPN plunged 8.5% after the company said its largest shareholder, Mexico’s America Movil has agreed to back a planned capital increase of EUR4 billion.

On the upside, building materials maker Lafarge saw shares jump 6.9% after reporting earnings that beat analysts’ estimates. The company also confirmed a number of debt-cutting goals.

Credit Agricole saw shares climb 5.5% despite posting a wider-than-estimated fourth-quarter loss after writing down goodwill at its Italian and investment-banking units.

However, most other financial stocks across the continent were lower, as investors remained jittery over the upcoming general elections in Italy next week, amid concerns that a hung parliament could hamper ongoing efforts at economic reforms.

Italy’s Unicredit saw shares fall 1.5%, France’s BNP Paribas lost 1.4% while Spain’s Banco Santander declined 0.7%.

Elsewhere, in London, the FTSE 100 inched up 0.5% to hit a five-year high after dovish Bank of England minutes fuelled expectations over more monetary easing.

The minutes of the BoE’s February meeting showed that policymakers were split six to three on whether to increase the bank's quantitative easing program to GBP400 billion from GBP375 billion, with BoE Governor Mervyn King voting in favor of an increase.

Separately, official data showed that the number of people claiming unemployment benefits in the U.K. fell by a seasonally adjusted 12,500 in January, compared to expectations for a decline of 5,000.

In earnings news, global miner BHP Billiton saw shares fall 2.5% after posting a 43% drop in first-half net profit excluding special items to GBP3.81 billion.

The company also announced that Chief Executive Officer Marius Kloppers will retire. Non-ferrous chief Andrew McKenzie will be appointed to the role.

RSA Insurance Group saw shares plummet 14.4% after the insurance giant lowered its dividend for the second half of 2012 by 33%.

Across the Atlantic, U.S. equity markets pointed to a flat open, as market players awaited the release of the minutes from the Federal Reserve's policy-setting meeting last month.

The Dow Jones Industrial Average futures were little changed, the S&P 500 futures signaled a flat open, while the Nasdaq 100 futures indicated a 0.1% decline.

Later in the day, the U.S. was also to release official data on building permits and housing starts.