European stocks steady following previous day’s rally; Dax up 0.2%

Investing.com - European stock markets were little changed in rangebound trade during European morning hours on Wednesday, with investors hesitant to enter the market following the previous day’s strong rally as focus shifted to corporate earnings reports.  

During European morning trade, the EURO STOXX 50 was little changed, France’s CAC 40 eased up 0.1%, while Germany’s DAX 30 tacked on 0.2%.

Global equities rallied on Tuesday, with the S&P 500 index closing at a five-year on Wall Street, while European equities surged following a report which showed that the ZEW index of German economic sentiment hit a 34-month high in February.

But investors were hesitant to extend the rally as focus shifted back to corporate earnings reports.

Jitters over the upcoming general elections in Italy next week also weighed, amid concerns that a hung parliament could hamper ongoing efforts at economic reforms.

In Frankfurt, Deutsche Lufthansa saw shares tumble 5.4% after saying it will suspend its dividend for the first time since 2010 to preserve cash.

Meanwhile, Dutch telecom firm Royal KPN lost 5.9% after the company announced plans to raise capital.

On the upside, building materials maker Lafarge saw shares jump 5.8% after reporting earnings that beat analysts’ estimates. The company also confirmed a number of debt-cutting goals.

Credit Agricole saw shares climb 2.8% despite posting a wider-than-estimated fourth-quarter loss after writing down goodwill at its Italian and investment-banking units.

Elsewhere, in London, the FTSE 100 was little changed as investors looked ahead to the release key employment data as well as the minutes from the Bank of England’s most recent policy-setting meeting.

Global miner BHP Billiton saw shares fall 2.1% 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.

Across the Atlantic, U.S. equity markets pointed to a moderately higher 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 pointed to a 0.1% gain, the S&P 500 futures signaled a 0.1% rise, while the Nasdaq 100 futures indicated a 0.15% advance.

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