European stocks remain mixed in cautious trade; Dax down 0.12%

Investing.com - European stocks were mixed on Wednesday, as investors remained cautious despite globally positive data from the euro zone

During European afternoon trade, the EURO STOXX 50 fell 0.18%, France’s CAC 40 eased up 0.06%, while Germany’s DAX 30 slipped 0.12%.

Data showed that manufacturing activity in Germany and the wider euro zone improved in January, but indicated that France, the bloc’s second largest economy, may be in a recession.

Germany’s manufacturing purchasing managers’ index rose to 48.8 from 46.0 in December, still below the 50 level that separates contraction from expansion, while the country's private sector expanded at the fastest pace in more than a year, with the services PMI rising to 55.3 for January, compared with 52.0 in December.

The euro zone manufacturing PMI rose to a 10-month high of 47.5 in January from a final reading of 46.1 in December, while the services PMI came in at 48.3 from 47.8 in December.

The French manufacturing PMI fell to a four-month low of 42.9 this month, while the services PMI came in at 43.6. 

Financial stocks turned broadly higher, as shares in French lenders BNP Paribas and Societe Generale climbed 0.60% and 0.87%, while Germany's Deutsche Bank and Commerzbank added 0.14% and 0.43% respectively.

Bloomberg reported earlier that Commerzbank is preparing to cut 4,000 to 6,000 jobs over the next four years to reduce costs and meet a profit goal.

On the downside, Nokia plummeted 4.87%, as the cellphone company said it would scrap its dividend to buy itself more time to stage a turnaround, after posting a return to profit in the fourth quarter following a string of losses.

In London, commodity-heavy FTSE 100 rose 0.32%, supported by gains in oil and mining stocks.

Oil and gas major Anglo American remained on the upside, rising 0.25%, while rival BP climbed 0.65%.

Mining giant Rio Tinto also trended higher, with shares advancing 0.82%, as did copper producer Xstrata, up 0.37%, while rival companies Eurasian Natural Resources and Evraz plunged 1.35% and 1.21% respectively.

In the financial sector, stocks were mixed. HSBC Holdings eased up 0.08% and Lloyds Banking gained 0.62%, while Barclays and the Royal Bank of Scotland retreated 0.25% and 0.26%.

Elsewhere, EasyJet surged 4.33%, extending earlier gains, after reporting a rise in first-quarter sales.

In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.05% gain, S&P 500 futures signaled a 0.19% fall, while the Nasdaq 100 futures indicated a 1.32% drop.

Also Thursday, data showed that China’s preliminary HSBC manufacturing PMI improved to 51.9 in January, a two-year high, from a final reading of 51.5 in December, adding to signs of a rebound in the world’s second largest economy.

Later in the day, the U.S. was to release the weekly government report on initial jobless claims.