- UK GDP rises in line with forecast
- German business confidence falls
- US durable goods in focus
FTSE 100: 0.05%
CAC 40: -0.30%
FTSE MIB: -1.06%
IBEX 35: -0.65%
Stoxx 600: -0.13%
European stocks were mixed as UK economic output grew in line with forecasts and German business confidence fell more than expected.
UK gross domestic product (GDP) increased 0.8% between July and September, compared to growth of 0.7% between April and June, the Office for National Statistics revealed.
It marked the biggest jump since the second quarter of 2010, signalling a big pick-up in UK recovery. It also reinforced expectations for the Bank of England to cut its interest rate earlier than forecast in August.
"The preliminary estimate of Q3 GDP confirms that the UK economy is currently enjoying a period of healthy and well-balanced growth," according to Capital Economics.
"Looking ahead, falling real pay, the fiscal squeeze and the dormant state of the Eurozone economy seem likely to prevent the UK's economic recovery from gathering much more pace. But with employment growing, confidence returning and productivity still well below its potential, it seems unlikely that the recovery will fade significantly either."
Germany, on the other hand, saw confidence decline slightly among the country's business executives for the first time in six months. The Ifo business climate index fell to 107.4 in October from 107.7, compared to a consensus estimate of 108.
The report follows the release Germany manufacturing purchasing mangers' index yesterday which rose slightly to 51.5 in October from 51.1 in September, exceeding the 51.4 consensus and the 50 mark that signals expansion.
"Both the October IFO business climate and PMI (flash) surveys still signal robust growth momentum of the German economy," Barclays said.
"For the final quarter of 2013, we continue to expect quarterly GDP growth of about 0.4% q/q, which is also our estimate for Q3 (a first official figure is due on November 14th)."
In the US, durable goods orders for September, released later, will likely show an increase of 2% compared to August when it increased 0.1%, analysts predict.
Electrolux AB plunged after the maker of ovens and dishwashers posted quarterly profit that missed estimates.
Volvo dropped after posting a decrease in third-quarter earnings before interest and taxes.
Renault slipped as the French carmaker said third-quarter sales dipped due to weaker currencies in emerging markets.
Luxury-goods maker Kering declined after reporting a fall in third-quarter sales from continuing operations that missed analysts' expectations.
Schneider tumbled after the maker of low- and medium-voltage equipment reduced its 2013 profit and revenue forecasts due to a stronger euro.
Chemical maker BASF climbed as third-quarter earnings rose to beat analysts' estimates.
MorphoSys advanced after the German biotechnology company raised its earnings forecast for this year.
Other asset classes decline
The euro fell 0.04% to $1.3795
Brent crude futures dropped $0.122 to $106.860 per barrel on the ICE.