European stocks rise after Spanish PMI, eyes on ECB; Dax up 0.46%

Investing.com - European stocks were higher on Wednesday, after the release of upbeat service sector data out of Spain and as growing expectations for an upcoming rate cut by the European Central Bank supported equity markets.

During European morning trade, the EURO STOXX 50 climbed 0.67%, France’s CAC 40 advanced 0.70%, while Germany’s DAX 30 gained 0.46%.

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.

Meanwhile, 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.

While no policy change was expected from the ECB at its policy meeting on Thursday many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December.

Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale rose 0.38% and 0.11%, while Germany's Deutsche Bank rallied 1.35%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander jumped 1.11% and 1.31% respectively, while Italy's Intesa Sanpaolo and Unicredit gained 1.09% and 1.78%.

Elsewhere, Alstom surged 4.85% 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 4.69% 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 rose 0.24%, supported by gains in the mining sector.

Shares in Glencore Xstrata climbed 0.60% and Polymetal gained 0.42%, while mining giants BHP Billiton and Rio Tinto jumped 1.37% and 1.26% respectively.

Financial stocks were also mostly higher, as Lloyds Banking added 0.20% and Barclays advanced 0.60%, while the Royal Bank of Scotland rose 0.29%. HSBC Holdings underperformed however, slipping 0.11%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.42% rise, S&P 500 futures signaled a 0.45% increase, while the Nasdaq 100 futures indicated a 0.41% gain.

Later in the day, the euro zone was to release data on retail sales, while Germany was to publish a report on factory orders.