European Markets Finished Mixed After Yesterday's Rally

(RTTNews) - The European markets ended Wednesday's session with mixed results, following the strong gains of the previous session. Energy stocks were under pressure today, after oil prices turned lower following a 4-session rally. U.S. private sector employment came in weaker than expected, which raised some concerns ahead of Friday's employment report. Investors also continue to monitor the developments in Greece.

Greece's new prime minister Alexis Tsipras on Wednesday held meetings with the heads of the European Commission, European Council and the European Parliament in Brussels.

European Council President Donald Tusk said his talks with Tsipras were open and frank on a number of issues of common concern.

As regards European financial assistance to Greece, Tusk stressed the need to find a solution acceptable to all Member States involved in the negotiations. Those negotiations will take place in the euro group. They will be difficult, will require cooperation and dialogue as well as determined efforts by Greece, he told the Greek leader.

We agreed on the importance of unity within the European Union with regard to other key challenges facing Europe, Tusk said in a statement.

Tsipras visited the European Parliament Wednesday. After the meeting, EP President Martin Schulz said: "Tsipras is battling for European cooperation, not only seeking a solution for Greece. He has my full support." He also stressed the need for a framework for "constructive dialogue and solutions".

Tsipras said he was optimistic that they were moving in the right direction for a sustainable solution.

Greece's new Finance Minister, Yanis Varoufakis, said in an interview published today that Greece has started negotiations with the International Monetary Fund over a plan to lessen the burden of the country's hefty debt burden.

European Central Bank Governing Council member Jens Weidmann said in an interview to the German business magazine VBW that there was no deflation in the euro area now and it was also not very likely in future, reports said Wednesday.

The very low inflation in Eurozone at present is mainly due to low oil prices, the policymaker noted. He expects a gradual rebound in consumer prices over the medium term.

He also said that the Governing Council do not see a downward spiral of falling prices, which implies deflation, now and such a scenario was not very likely in future.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased by 0.11 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, gained 0.71 percent.

The DAX of Germany climbed by 0.19 percent and the CAC 40 of France rose by 0.39 percent. The FTSE of the U.K. declined by 0.17 percent, but the SMI of Switzerland finished higher by 1.85 percent.

In Frankfurt, RWE declined by 1.38 percent and E.ON lost 0.71 percent. An adviser to the EU Court of Justice rejected arguments that the German nuclear fuel tax violated EU state aid rules yesterday.

Deutsche Bank fell by 0.33 percent, after Standard & Poor's put its long and short-term ratings on watch for a potential downgrade.

Osram Licht, a leader in the global lighting market, increased by 2.68 percent, after posting better-than-expected earnings for the December quarter.

In Paris, LVMH Moët Hennessy Louis Vuitton surged by 8.13 percent. The company reported a 6 percent increase in revenues for the full year 2014 and a 10 percent increase in fourth quarter revenues over last year.

Total declined by 1.10 percent and Technip lost 2.87 percent.

Credit Agricole decreased by 1.50 percent and Societe Generale fell by 1.31 percent.

In London, Hargreaves Lansdown dropped by 7.66 percent, after its profit for the first half of the year slipped a bit.

Vodafone decreased by 0.17 percent, after its third quarter revenues declined.

Barclays rose by 0.12 percent and HSBC lost 0.31 percent after Standard & Poor's cut their long-term credit ratings. S&P said that state aid in the event of a crisis is now unlikely due to measures taken by European and domestic authorities. Lloyds Banking Group slipped by 0.56 percent, but the Royal Bank of Scotland gained 1.38 percent.

Tullow Oil sank by 5.15 percent and BP dropped by 1.00 percent. BG Group declined by 1.38 percent and Royal Dutch Shell lost 1.01 percent.

Eurozone retail sales grew at a slower pace in December, Eurostat showed Wednesday. Retail sales grew 0.3 percent month-on-month in December, slower than November's 0.7 percent increase.

Nonetheless, this was the third consecutive rise in sales and better than economists' forecast for a flat growth.

The Eurozone private sector expanded at the fastest pace since July last year as output expanded in Germany, Italy and Spain. But the downturn in the French economy extended into its ninth month. The final composite output index rose to 52.6 in January from 51.4 in December. It was also above the flash reading of 52.2.

Germany's service sector activity growth accelerated at the beginning of 2015 amid rising new business, survey data from Markit Economics showed Wednesday. The final services Purchasing Managers' Index climbed to 54 in January from 52.1 in December. The flash score was 52.7.

The French service sector fell back into negative territory in January, reversing a marginal growth in the prior month, final data from Markit showed Wednesday. The services PMI fell to 49.4 from 50.6 in December. It stayed also below the flash score of 49.5.

The U.K. service sector expanded more than expected in January as new business rose at a faster pace, survey data from Markit showed Wednesday. The Markit/Chartered Institute of Purchasing & Supply Purchasing Managers' Index rose to 57.2 in January from 55.8 in December. The score was forecast to rise to 56.3.

Shop prices in the United Kingdom were down 1.3 percent on year in January, the British Retail Consortium said on Wednesday. That was slower than the 1.7 percent drop in December and the forecasts for a decline of 1.6 percent.

China's service sector expansion slowed in January, figures from Markit Economics and HSBC Bank showed Wednesday. The services business activity index fell to 51.8 in January from 53.4 in December. This marked the slowest expansion rate in six months.

Private sector employment in the U.S. rose by less than expected in the month of January, according to a report released by payroll processor ADP on Wednesday. ADP said private sector employment increased by 213,000 jobs in January following an upwardly revised increase of 253,000 jobs in December.

Economists had expected employment to climb by about 223,000 jobs compared to the addition of 241,000 jobs originally reported for the previous month.

After reporting a notable slowdown in the pace of growth in U.S. service sector activity in the previous month, the Institute for Supply Management released a report on Wednesday showing a modest uptick by its index of activity in the sector in January.

The ISM said its non-manufacturing index inched up to 56.7 in January from an upwardly revised 56.5 in December, with a reading above 50 indicating growth in the service sector. Economists had expected the non-manufacturing index to edge up to 56.5 from the 56.2 originally reported for the previous month.