European stocks trim gains after E.Z. data, Spain auction; Dax up 0.21%

Investing.com - European stocks trimmed gains on Wednesday, after the release of weak euro zone retail sales data and a disappointing Spanish debt auction, although signs of progress in handling the euro zone's debt crisis continued to support investor confidence.

During European morning trade, the EURO STOXX 50 edged up 0.20%, France’s CAC 40 added 0.19%, while Germany’s DAX 30 rose 0.21%.

Official data earlier showed that retail sales in the euro zone dropped by 1.2% in October, far more than the expected 0.1% decline, after a 0.6% fall the previous month.

In addition, Spain raised EUR4.3 billion at an auction of government debt, falling short of the target of EUR4.5 billion.

But sentiment remained supported after Greece launched a scheme to buy back debt from private investors on Monday, as part of an agreement to reduce its debt load and unlock a new bailout package worth EUR44 billion.

Financial stocks remained broadly higher, as shares in French lenders BNP Paribas and Societe Generale rose 0.32% and 0.25%, while Germany's Deutsche Bank and Commerzbank rallied 1.30% and 2.24% respectively.

Peripheral lenders were also on the upside, as Italian banks Unicredit and Intesa Sanpaolo added 0.21% and 0.30%, while Spain's BBVA and Banco Santander advancd 0.58% and 0.05%.

Elsewhere, Nokia Oyj soared 7.11%, after the Finnish mobile-phone maker unveiled a version of its flagship smartphone for China’s largest wireless carrier, China Mobile Ltd.
In London, commodity-heavy FTSE 100 added 0.15%, supported by sharp gains in oil and mining stocks, while data showed that the service sector expanded at the slowest pace in almost two years in November.

Oil and gas major Anglo American saw shares rally 3.34%, while rival BP dropped 0.68% on the other hand, erasing earlier gains.

Mining giants Rio Tinto and BHP Billiton remained higher, with shares advancing 2.68% and 2.25%, while copper producers Xstrata and Kazakhmys jumped 0.93% and 3.57% respectively.

Meanwhile, U.K. lenders tracked their European counterparts higher, as the Royal Bank of Scotland added 0.20% and Lloyds Banking rose 0.30%, while Barclays climbed 0.49% and HSBC Holdings advanced 0.68%.

HSBC announced earlier that it agreed to sell its stake in China’s Ping An Insurance to Thai billionaire Dhanin Chearavanont for USD9.4 billion, in a move to revive profit and boost capital.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.36% rise, S&P 500 futures signaled a 0.25% gain, while the Nasdaq 100 futures indicated a 0.12% increase.

Also Wednesday, Markit research group said that Spain's services purchasing managers' index rose to a seasonally adjusted 42.4 in November, from 41.2 the previous month. Analysts had expected the index to fall to 41.0 last month.

Later in the day, the U.S. was to release a report on ADP nonfarm payrolls, as well as official data on factory orders and crude oil stockpiles. In addition, the Institute of Supply Management was to produce a report on service sector activity.