By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks ended a choppy day on an
upbeat note on Wednesday, getting a late-session boost from lower
oil prices and solid U.S. service-sector data.
Markets had struggled for direction earlier in the day,
following a round of economic reports that offered no new insights
into the economic health of the eurozone, ahead of Thursday's
meeting of the European Central Bank.
Oil boost: But in the afternoon, markets moved out of their
flatline territory and ended firmly higher after oil prices slumped
(http://www.marketwatch.com/storyno-meta-for-guid) on the back of
disappointing supply data. Crude oil for April (CLJ5) dropped 1.2%
to $49.92. Lower oil prices can be good for companies and the
economy as it means consumers get more money to spend on other
things.
Additionally, a stronger-than-expected U.S. ISM nonmanufacturing
report also pleased investors
(http://www.marketwatch.com/story/us-service-sector-saw-brisk-growth-in-february-2015-03-04).
U.S. stocks, however, traded lower
(http://www.marketwatch.com/storyno-meta-for-guid), hit by the ADP
private-sector jobs report that fell short of estimate
Europe data: Among the clutch of data from the eurozone, retail
sales climbed 1.1% in January
(http://www.marketwatch.com/story/eurozone-retail-sales-surge-in-january-2015-03-04)
from December, according to the European Commission's statistics
agency. The rise was more than the 0.4% reading analysts polled by
FactSet had expected. Sales were up 3.7% from the year-earlier
period, the fastest pace of growth since August 2005.
Before that, data firm Markit said the final February reading of
its eurozone composite index came in at 53.3, a touch lower than an
initial estimate of 53.5. But the reading still indicated expansion
in business activity.
Investors will watch for comments from the European Central Bank
on Thursday about its view of the eurozone economy, and for any
further updates about its massive asset-purchase program. Read: 5
things for investors to know about the ECB's QE
(http://www.marketwatch.com/story/5-things-for-investors-to-know-about-the-ecbs-qe-ahead-of-thursdays-meeting-2015-03-04)
Markets: The Stoxx Europe 600 jumped 0.8% to close at 390.61,
after darting between small gains and losses earlier in the day.
The pan-European index on Tuesday fell 0.9%
(http://www.marketwatch.com/story/european-stocks-rise-on-signs-of-economic-recovery-2015-03-03),
pulling back from gains in recent sessions that have pushed it to
its strongest levels since 2007.
Germany's DAX 30 ended 1% higher at 11,390.38, while France's
CAC 40 gained 1% to 4,917.35.
The U.K.'s FTSE 100 rose 0.4% to 6,919.24
(http://www.marketwatch.com/story/itv-pops-higher-fresnillo-slide-in-london-trade-2015-03-04),
with the gain capped by a 8.5% drop in shares of precious metal
miner Fresnillo PLC following its financial results
(http://www.marketwatch.com/story/fresnillo-net-profit-slumps-on-lower-metals-prices-2015-03-04).
The pound (GBPUSD) slipped to $1.5260 after Markit and CIPS said
their U.K. services PMI came in at 56.7 in February, down from 57.2
in January and missing expectations of 57.5 from analysts in a
FactSet survey. The sterling traded at $1.5357 ahead of the report,
and at $1.5361 late Tuesday in New York.
In the U.S., markets opened lower after data showed
fewer-than-expected private-sector jobs were added to the economy
in February
(http://www.marketwatch.com/story/private-sector-adds-212000-jobs-in-february-adp-2015-03-04-8912123).
Movers and shakers: Shares of Henkel AG gave up 0.8% after the
German manufacturing company reported a drop in fourth-quarter
profit
(http://www.marketwatch.com/story/henkel-profit-falls-on-restructuring-charge-2015-03-04-2485457).
Shares of Havas SA dropped 3.4% after Kepler Cheuvreux cut the
public relations firm to reduce from hold.
Standard Chartered PLC added 5.1% after the bank said it plans
to conserve capital after a 37% drop in 2014 net profit
(http://www.marketwatch.com/story/standard-chartered-net-down-37-to-cut-assets-2015-03-04)
to $2.51 billion.
ITV PLC climbed 5.7%. The broadcaster said it would return 250
million pounds ($384.5 million) to shareholders
(http://www.marketwatch.com/story/itv-returns-cash-to-shareholders-as-profit-rises-2015-03-04)
through a special dividend of 6.25 pence a share.
Deutsche Telekom AG gained 2.4% after Barclays said the company
remains its top pick within the telecom sector.
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