By Carla Mozee, MarketWatch
European stocks edged higher Thursday, in part as investors look
ahead to likely improvement in U.S. growth.
The Stoxx Europe 600 index turned up 0.1% at 331.37, but losses
among U.K. equities capped the pan-European index's advance.
The finance sector was in focus after the U.S. Federal Reserve
on Wednesday rejected the capital plans for the U.S. arm's of
British multinational HSBC Holding PLC , Spain's Santander and
Royal Bank of Scotland Group . The Fed also nixed Citigroup
Inc.'s(C) plan, saying the firm didn't make sufficient progress in
improving risk-management and control practices.
In London, shares of HSBC shed 0.6% and Royal Bank of Scotland
shares fell 1.3%, but Santander shares in Madrid turned up by
0.1%.
Regional equities had opened lower, following up on accelerated
selling on Wall Street after U.S. President Barack Obama urged
European leaders to join the U.S. in a unified response against
Russia over its annexation of the Ukrainian breakaway region of
Crimea. Russia's Micex index lost 1.1% on Thursday.
The International Monetary Fund on Thursday said it reached a
deal to provide up to $18 billion to Ukraine as part of an economic
reform program for the country. Changes required for the aid
package may be "painful," Ukraine's central bank chief Stepan Kubiv
reportedly said.
Meanwhile, investors sifted through economic updates for Europe
ahead of U.S. data on quarterly growth and weekly jobless claims.
Economists polled by MarketWatch expect fourth-quarter GDP to be
raised to 2.8% in the government's third and final update. The
government estimated in January that the economy expanded by 3.2%,
but later reduced that estimate a rate of 2.4%.
French stocks eventually pared losses after a survey showed
growth in consumer confidence in France this month. Insee, the
national statistics agency, said the consumer confidence index rose
to 88 from 85 in February, returning to a level seen in July 2012.
France's CAC 40 narrowed its decline to less than 1 point at
4,384.84.
Germany's DAX 30 moved up 0.1% to 9,456.04.
The U.K.'s FTSE 100 was down 0.4% at 6,570.18, held back in part
by declines among miners and banks. Meanwhile, the U.K.'s regulator
overseeing the electricity and gas markets called for an
investigation over concerns about stalled competition. But shares
of British Gas owner Centrica PLC reversed course and rose 0.6%,
but SSE PLC remained lower, by 1.5%.
Outside of equities, the British pound (GBPUSD) jumped above
$1.66 against the U.S. dollar after February retail-sales figures
beat analyst expectations.
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