- US ADP report misses forecasts
- US services activity grows
- UK and Eurozone services PMI falls
- Eurozone retail sales decline
FTSE 100: 0.13%
CAC 40: 0.01%
FTSE MIB: 0.06%
IBEX 35: 0.21%
Stoxx 600: 0.14%
European stocks were mixed after a report on US private payrolls came in worse than expected.
Private-sector companies increased payrolls by 175,000 in January, compared to 227,000 a month earlier, according to ADP. Economists had called for 185,000 more jobs.
"We have not changed our forecast in response to this release, which is consistent with our expectation of a 175k rise in nonfarm payrolls, a 175k increase in private payrolls, and an unchanged unemployment rate of 6.7%," Barclays said.
The report comes ahead of the Labor Department's non-farm payrolls data on Friday which is expected to show the number of people hired in January rose to 184,000 from just 74,000 in December.
In other US releases, the Institute for Supply Management's non-manufacturing index rose from 53 to 54 in January, ahead of the 53.7 level expected by analysts. A figure above 50 indicates expansion.
In the Eurozone, the purchasing managers' index (PMI) for the Eurozone service industry fell to 51.6 in January from 51.9 a month earlier. It missed analysts' expectations of 51.9.
UK services PMI declined to 58.3 in January from 58.8 in December, compared to the forecast of 59.
Another report showed Eurozone retail sales dropped 1% in December, compared to a rise of 1.3% in November. Economists had pencilled in an increase of 1.5%.
ECB policy meeting
The European Central Bank (ECB) meets tomorrow, when it is expected to keep its policy unchanged.
However, the ECB is coming under mounting pressure to take greater measures to tackle falling inflation and the stagnant recovery.
ECB members are apparently showing varying degrees of concern about the threat of deflation in the Eurozone that could alter its current monetary policy stance, according to MNI sources.
Inflation is currently at 0.7%, well below the ECB's 2% target.
GSK gains after fourth quarter results
GlaxoSmithKline advanced after saying it expects revenue and profit to increase this year.
Swatch Group rallied after reporting full-year profit that beat analysts' estimates.
Hargreaves Lansdown slumped after saying its operating margins fell in the first half.
Svenska Handelsbanken was higher after announcing a special dividend that lifted its annual payout by 53%.
Syngenta declined after the biggest maker of crop chemicals reported full-year profit and revenue that missed forecasts.
The euro dropped 0.01% to $1.3518.
Brent crude futures rose $0.264 to $106.060 per barrel, according to the ICE.