European Markets Eked Out Modest Gains In Late Trade

(RTTNews) - The European markets got off to a weak start Wednesday and remained in negative territory for much of the session. The markets managed to break out into the green in late trade around the time that the U.S. markets overcame their early weakness. The majority of the European markets ended the session with a slight gain.

Investors appeared reluctant to make any major moves ahead of the release of the minutes of the most recent Federal Reserve meeting later today. Financial stocks were among the best performing stocks Wednesday. Meanwhile, mining and resource stocks were under pressure as the recent rally in commodities stalled.

Analysts at investment bank Goldman Sachs have downgraded equities to neutral over 12 months, saying they see valuations as expensive, particularly in Europe and the U.S., on a risk-adjusted basis.

Poland's fiscal risks could increase amid an economic slowdown due to reliance on rapid GDP growth to meet fiscal targets, and potential political pressure on the government to deliver on electoral promises, Fitch Ratings said Wednesday.

The country's economic growth slowed to 3 percent year-on-year in the first quarter from 4.3 percent in the previous three months. In its 2016 Convergence Programme submitted to the European Commission in April, the government forecast a widening of the fiscal deficit to 2.9 percent of GDP next year from 2.6 percent this year and last.

The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.62 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.91 percent.

The DAX of Germany climbed 0.54 percent and the CAC 40 of France rose 0.51 percent. The FTSE 100 of the U.K. declined 0.03 percent, but the SMI of Switzerland finished higher by 0.85 percent.

In Frankfurt, industrial robot maker Kuka soared 23.21 percent after Chinese home appliances manufacturer Midea made an unsolicited takeover bid for the company.

Deutsche Bank advanced 2.36 percent and Commerzbank added 2.37 percent.

In Paris, Suez Environnement declined 3.62 percent. Exane BNP Paribas downgraded its rating on the stock to "Neutral" from "Outperform."

Scor SE surrendered 2.84 percent after Jeffries lowered its rating on the stock to "Underweight" from "Hold."

Credit Agricole increased 1.61 percent and BNP Paribas added 1.48 percent. Societe Generale also finished higher by 1.40 percent.

In London, Burberry fell 2.71 percent after the luxury goods group reported a fall in full-year profits and warned the challenging environment for the sector would continue.

SABMiller rose 0.08 percent. The brewer has reported a fall in annual net profit, reflecting exceptional charges of $721 million principally relating to the impairment of investments in Angola and South Sudan, together with costs associated with the AB InBev transaction.

Booker Group leaped 6.06 percent, after Goldman Sachs upgraded its rating on the stock to "Buy."

Barclays increased 3.74 percent and Lloyds Banking Group gained 1.94 percent. Royal Bank of Scotland jumped 4.29 percent.

Mining stocks were under pressure due to the rising U.S. dollar. Anglo American sank 3.59 percent and Antofagasta fell 2.93 percent. Glencore dropped 2.60 percent and BHP Billiton lost 2.09 percent.

Hearing aid maker Sonova sank 6.36 percent in Zurich after its annual sales and profit targets fell short of expectations.

Novartis advanced 1.50 percent after announcing plans to separate its oncology unit from the rest of the pharmaceuticals business.

Volvo dropped 1.45 percent in Stockholm, after UBS downgraded its rating on the stock to "Neutral" from "Buy."

Eurozone inflation turned negative as estimated in April, final data from Eurostat showed Wednesday. The harmonized index of consumer prices slid 0.2 percent from the prior year after staying flat in March. The statistical office confirmed the annual rate.

The number of persons in employment in Germany grew further in the three months ended March, and at an accelerated pace, preliminary figures from Destatis showed Wednesday.

Total number of employed persons in the country rose 1.3 percent, or by 533,000 persons to 43.1 million in the March quarter from the corresponding period of 2015. It was also faster than the 1.0 percent climb in the fourth quarter.

The U.K. unemployment rate held steady at a decade-low in the three months to March period and the employment rate hit a record high, reflecting that the labor market weathered uncertainty on the EU referendum.

The Office for National Statistics showed that the ILO jobless rate remained at 5.1 percent, unchanged from February and matched economists' expectations.

At the same time, the employment rate was 74.2 percent in the three months to March, the highest since the comparable records began in 1971.

The U.K. household finance index decreased to the lowest level in nearly two years in May on strong inflation perceptions, survey data from Markit Economics showed Wednesday. The seasonally adjusted household finance index, which measures overall perceptions of financial well being and aims to track consumer behavior, fell to 42.3 in May from 45.1 in April.