European stocks turn mixed to lower on weak data; Dax up 0.66%

Investing.com - European stocks turned mixed to lower on Tuesday, after the release of disappointing data from the euro zone, while speculation over an upcoming rate cut by the European Central Bank persisted.

During European afternoon trade, the EURO STOXX 50 eased 0.07%, France’s CAC 40 slipped 0.22%, while Germany’s DAX 30 climbed 0.66%.

Official data showed that the unemployment rate in the euro zone ticked up to 12.1% last month , from 12.0% in February, in line with expectations.

In addition, data showed that the number of people unemployed in Germany rose by 4,000 in March, above expectations for an increase of 2,000, while the country’s unemployment rate remained unchanged at 6.9%.

A separate report showed that Spain’s recession deepened in the first quarter as the economy contracted by 0.5%, in line with expectations.

Financial stocks remained broadly higher, as shares in French lenders Societe Generale and BNP Paribas jumped 0.80% and 2.28%, while Germany's Deutsche Bank soared 8.02% after saying it is raising as much as EUR4.8 billion in capital, including EUR2.8 billion in stock.

In addition, JPMorgan Chase & Co. upgraded Germany’s biggest bank to "overweight" from "neutral".

Among peripheral lenders however, Spanish banks BBVA and Banco Santander slid 0.27% and 0.54% respectively, while Italy's Unicredit edged down 0.15%.

Adding to losses, AB InBev plummeted 2.69 after the brewer said earnings fell to USD3.43 billion in the first quarter on weak beer sales in Brazil and the U.S.

In London, commodity-heavy FTSE 100 fell 0.15%, weighed by sharp losses in mining stocks.

Rio Tinto and BHP Billiton tumbled 1.40% and 1.81% respectively, while rivals Eurasian Natural Resources and Polymetal plunged 3.02% and 4.12%.

Copper producers Xstrata and Kazakhmys were also on the downside, retreating 1.93% and 3.21%.

Meanwhile, financial stocks remained mostly higher. HSBC Holdings added 0.21% and Lloyds Banking surged 4.41%, while the Royal Bank of Scotland rallied 5.29%. Barclays underperformed on the other hand, dipping 0.03%.

Lloyds Banking said earlier that pretax profit jumped almost threefold in the first quarter to GBP1.48 billion.

In the U.S., equity markets pointed to a moderately open. The Dow Jones Industrial Average futures pointed to a 0.03% dip, S&P 500 futures signaled a 0.13% fall, while the Nasdaq 100 futures indicated a 0.05% loss.

Investors were also eyeing an upcoming ECB policy meeting later in the week, amid speculation over an interest rate cut after weak German economic data last week.

Later in the day, the U.S. was to release data on consumer confidence, a report on manufacturing activity in Chicago and private sector data on house price inflation.