- US employers add more jobs
- German factory orders rise
- Eurozone jobless rate unchanged
- Eurozone retail sales grow
FTSE 100: -0.50%
CAC 40: -0.04%
FTSE MIB: -0.17%
IBEX 35: 0.54%
Stoxx 600: 0.10%
European stocks were mixed as investors weighed a report which showed US employers added more jobs than expected in December.
The report from ADP Research Institute revealed an extra 238,000 jobs last month, up from an upwardly-revised 229,000 in November, surprising economists who had predicted a fall to 200,000.
The ADP report is often seen as a rough indicator of the official non-farm payroll figures released on Friday by the Bureau of Labor Statistics (BLS).
"While the frequent revisions and methodology of the ADP employment report limit its usefulness for forecasting the BLS employment report on a month-to-month basis, this report does suggest some modest upside risk to our forecast of a 175k increase in headline payrolls and a 175k increase in private payrolls in the BLS employment report released on Friday," said analyst Cooper Howes from Barclays.
The Federal Reserve is closely watching jobs data to determine whether the world's biggest economy is ready for another tapering of monetary stimulus.
The US central bank last month reduced its monthly bond purchases to $75bn from $85bn.
The Fed was due to release the minutes from the December 17th - 18th meeting after the close of the European market today.
German factory orders, Eurozone retail sales
German factory orders grew by 2.1% in November compared to month earlier when they fell 2.1%. Economists had forecast a rise of 1.5%.
Eurozone retail sales edged up 1.4% in November, beating expectations for a 0.1% increase. In October sales fell 0.4%.
The Eurozone's unemployment rate remained unchanged at 12.1% in November, as predicted by economists.
Spain's government has said it will cut down its net debt issuance this year from 2013. It plans to issue €65bn worth of new debt in 2014, not including rollovers of existing debt, compared to €71.9bn last year.
Meanwhile, the International Monetary Fund plans to increase its forecast for world growth, Managing Director Christine Lagarde told reporters in the Kenyan capital of Nairobi yesterday.
She said the organisation, which currently estimates the global economy will expand by 3.6% this year, will announce its new forecast in about three weeks.
Banking stocks rally
A gauge of European banks rose after Ireland successfully sold €3.75bn worth of 10-year bonds on Tuesday to strong demand.
Celesio was higher following a report that McKesson Corp. may increase its bid for the drug distributor.
Sainsbury declined after Chief Financial Officer John Rogers said that same-store sales for the company's financial year will rise less than 1%, compared to a previous forecast of a 1% to 1.5% increase.
SAP gained after UBS recommended that investors buy shares
in the German software corporation.
Aveva was up as UBS upgraded the stock to 'buy' from 'neutral', citing value for money.
Kion Group AG slumped after Goldman Sachs and private equity firm KKR put a 10.8% stake in the forklift maker on sale.
The euro fell 0.20% to $1.3589.
Brent crude futures rose $0.288 to $107.660 per barrel on the ICE.