European Markets Finished Mixed Ahead Of BoE Announcement

(RTTNews) - The European markets ended Wednesday's session with mixed results, following 4 straight days of losses. The markets fluctuated between gains and losses over the course of the day, in choppy trading action.

Traders were in a cautious mood ahead of tomorrow's Bank of England meeting. Most economists expect the bank to maintain the status quo on interest rates. The uncertain outlook for U.S. interest rates also continues to weigh on investor sentiment, ahead of the Federal Reserve meeting next week.

Luxury goods companies were under pressure after profit warnings from both Hermes and Richemont. Gold and mining stocks fared much better due to rising prices for precious metals and the safe haven appeal of gold.

European Central Bank Executive Board member Sabine Lautenschlaeger said she sees no need for further rate cuts or for changing the key design elements of the ECB's asset-purchase program for now.

The pan-European Stoxx Europe 600 index advanced 0.04 percent. The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.33 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.04 percent.

The DAX of Germany dropped 0.08 percent and the CAC 40 of France fell 0.39 percent. The FTSE 100 of the U.K. advanced 0.12 percent, but the SMI of Switzerland finished lower by 0.15 percent.

In Frankfurt, Bayer climbed 0.40 percent after it announced a deal to acquire U.S. seeds company Monsanto.

In Paris, Hermes International sank 8.77 percent. The luxury brand reported solid first-half earnings, but warned it expects lower earnings in the second half.

LVMH dropped 2.19 percent and Kering weakened by 0.95 percent. Burberry also surrendered 1.81 percent in London.

In London, Galliford Try surged 7.25 percent after the homebuilder boosted its dividend after reporting a record annual profit fueled by strong growth across the group.

Compass Group advanced 1.05 percent after J.P. Morgan Cazenove upgraded its rating on the stock to "Overweight" from "Neutral."

Mining stocks turned in a solid performance Wednesday. Glencore increased 2.49 percent and Anglo American advanced 2.53 percent. Antofagasta climbed 1.60 percent and BHP Billiton rose 1.51 percent. Randgold Resources also gained 1.02 percent.

Richemont dropped 3.93 percent in Zurich after it warned its first-half operating profit will probably come in around 45 percent below last year.

Eurozone industrial production fell for the first time in four months, but at a less-than-expected in July, figures from Eurostat showed Wednesday. Industrial production declined 0.5 percent year-on-year after a 0.7 percent gain in June, revised from 0.4 percent. Economists had forecast a 0.8 percent fall.

France's consumer price inflation held steady for a second straight month in August, final figures from INSEE showed Wednesday. The consumer price index rose 0.2 percent year-on-year, same as in the previous two months. Inflation was in line with its preliminary estimate.

Switzerland's investor sentiment strengthened for the first time in three months in September, survey data from the Centre for European Economic Research/ZEW showed Wednesday. The ZEW-CS Indicator rose by 5.5 points to a reading of 2.7 points, marking the first increase after two months of decline.

Sweden's economy expanded at a faster pace than estimated earlier, latest data from Statistics Sweden showed Wednesday. Gross domestic product grew 0.5 percent from the first quarter, which was faster than the 0.3 percent expansion estimated earlier. The economy grew 0.4 percent in the first quarter.

Ireland's economy grew in the second quarter after a slump in the first three months of the year, preliminary data from the statistical office showed Wednesday. Gross domestic product grew 0.6 percent from the previous three months, when the economy shrank 2.1 percent.

British unemployment rate held steady in July, while claimant count rose more-than-expected in August, figures from the Office for National Statistics showed Wednesday. The ILO jobless rate was 4.9 percent, unchanged from the three months to June. The figure was in line with economists' expectations.

Import prices in the U.S. saw a modest decrease in the month of August, the Labor Department revealed in a report released on Wednesday. The report also showed a notable decline in export prices during the month.

The report said import prices dipped by 0.2 percent in August after inching up by 0.1 percent in July. Economists had expected import prices to edge down by 0.1 percent.

The Labor Department also said export prices slid by 0.8 percent in August following a 0.2 percent increase in July. Export prices had been expected to tick up by 0.1 percent.