European Markets Finished With Mixed Results

(RTTNews) - The European markets ended Wednesday's session with mixed results, after falling to their lowest level in three months yesterday. Positive data from China and Japan provided some relief to investors and a rebound in commodity prices provided a boost to mining and resource stocks. Energy stocks also turned in a strong performance, after a drop in U.S. crude inventories last week sparked a jump in crude oil prices.

Chinese inflation rose more than expected in November suggesting that measures taken to boost economic growth is beginning to spur domestic demand.

Consumer prices rose 1.5 percent year-on-year in November, faster than the 1.3 percent growth seen in October, as both food and non-food price inflation picked up, the National Bureau of Statistics said Wednesday.

Inflation also exceeded the expected rate of 1.4 percent. Despite the acceleration, overall inflation remains well below the government's full year target of around 3 percent.

Another report from the NBS showed that producer prices decreased for 45 consecutive months in November. The producer price index slid 5.9 percent annually, the same rate of decline as seen in October. Economists had forecast a 6 percent fall for November.

The U.K. economy is set to continue moderate growth, mostly driven by strong expansion in the service sector and consumer spending, the British Chambers of Commerce said in a report on Wednesday, as it trimmed the growth forecast, citing weak trade and manufacturing activity.

Gross domestic product is forecast to grow 2.4 percent this year instead of 2.6 percent, the business lobby said in its latest Economic Forecast. The projection for next year was lowered to 2.5 percent from 2.7 percent. For 2017, growth is projected to be 2.5 percent compared to previous forecast of 2.7 percent.

Market analysts' expectations regarding the outcome of the December 3 policy session of the European Central Bank were exaggerated, leading to disappointment, a member of the bank's rate-setting body said Wednesday.

"It was really a massive failure of market analysts," ECB Governing Council member Ewald Nowotny said in Vienna.

Nowotny, who head Austria's central bank, also said that there was the ECB's communication never gave a false signal and hence, there was no need to review the bank's communication policy. He also asserted that markets cannot pressure the ECB to act.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.61 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.37 percent.

The DAX of Germany declined 0.76 percent and the CAC 40 of France fell 0.95 percent. The FTSE of the U.K. dropped 0.14 percent and the SMI of Switzerland finished lower by 0.88 percent.

In Frankfurt, Bayer decreased 1.64 percent on reports European and U.S. drug safety agencies are probing a trial involving its anti-blood clotting drug Xarelto.

Volkswagen surged 6.17 percent, after it announced that it no longer needs to set aside 2 billion euros for an issue with its cars that it disclosed last month.

Chemical producer BASF dipped 0.63 percent. Dow Chemical Co. and DuPont Co. are in advanced talks to merge and a deal is expected to be announced by Thursday, media reports suggest.

Deutsche Bank finished lower by 0.49 percent, after Fitch Ratings downgraded the bank's long-term issuer default rating and long-term senior debt ratings. RWE advanced 2.46 percent and E.ON climbed 1.85 percent.

In Paris, Technip increased 3.57 percent and Total added 0.93 percent.

In London, Ashtead soared 8.63 percent after the company reported a strong first-half profit.

Mining stocks recovered some ground after commodity prices rebounded. Rio Tinto climbed 3.88 percent and Glencore rose 4.57 percent. BHP Billiton gained 3.68 percent and Randgold Resources advanced 1.99 percent.

Anglo American fell 1.22 percent, after Jefferies downgraded its rating on the stock to "Underperform" from "Hold."

Energy stocks turned in a strong performance on rising crude oil prices. Royal Dutch Shell increased 1.55 percent and BP rose 0.76 percent. BG Group climbed 2.46 percent and Tullow Oil gained 3.44 percent.

Go-Ahead Group tumbled 4.90 percent. The provider of passenger transport services said it is disappointed not to have been awarded the Northern franchise and the TransPennine Express franchise.

Electrolux dropped 1.13 percent in Stockholm, after the home appliances maker announced measures to structurally reduce costs.

Germany's exports declined more-than-expected in October and imports logged its biggest fall since 2012, reflecting a weak start to the fourth quarter.

Exports fell 1.2 percent in October from September, when they advanced 2.6 percent, figures from Destatis revealed Wednesday. Shipments were expected to fall 0.6 percent.

Likewise, imports declined 3.4 percent in contrast to September's 3.8 percent increase. This was the biggest fall since April 2012, when shipments slid 3.5 percent. Economists had forecast a 1 percent drop for October.

As imports dropped more than exports, the trade surplus rose to a seasonally adjusted EUR 20.8 billion in October from about EUR 19.2 billion a month ago.

Germany's labor costs growth moderated in the three months ended September, after remaining stable in the previous quarter, data from Destatis showed Wednesday. Labor costs per hour worked consisting of gross earnings and non-wage costs grew a calendar-adjusted 2.4 percent in the third quarter, but slower than the 3.0 percent steady rate of increase in the second quarter, which was revised down from 3.1 percent.

Reflecting decreases in inventories of both durable and non-durable goods, the Commerce Department released a report on Wednesday showing an unexpected drop in U.S. wholesale inventories in the month of October.

The Commerce Department said wholesale inventories edged down by 0.1 percent in October after rising by a downwardly revised 0.2 percent in September. Economists had expected inventories to rise by 0.2 percent compared to the 0.5 percent increase originally reported for the previous month.