European Markets Finished Mostly Higher After Banks Rally

(RTTNews) - The majority of the European markets ended Wednesday's session with modest gains. The strong performance of the bank stocks drove the markets higher mid-week, but the weak performance of the miners limited the upside.

Disappointing results from Glencore weighed on the mining stocks, as well as falling prices for precious metals due to the strengthening of the U.S. dollar. Gold prices were hit particularly hard and copper prices hovered near six-week lows.

Falling crude oil prices also had a negative impact on energy stocks. Rising U.S. crude inventories drove the price of crude lower, after the EIA reported that inventories increased by 2.5 million barrels in the U.S. last week.

Weak regional data also played a role, as German GDP data failed to impress and U.K. mortgage approvals sank to their lowest level in 18 months. Investors also remain cautious ahead of Friday's speech by Fed Chair Janet Yellen.

The pan-European Stoxx Europe 600 index advanced 0.30 percent. The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.50 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.31 percent.

The DAX of Germany climbed 0.28 percent and the CAC 40 of France rose 0.32 percent. The FTSE 100 of the U.K. declined 0.48 percent and the SMI of Switzerland finished lower by 0.02 percent.

In Frankfurt, Commerzbank increased 3.14 percent and Deutsche Bank gained 2.46 percent.

In Paris, Societe Generale advanced 2.58 percent and BNP Paribas added 1.71 percent. Credit Agricole also finished higher by 1.65 percent.

In London, Glencore sank 3.06 percent after reporting a 66 percent drop in first-half profit. The miner and commodity trader also agreed to sell a 30 percent stake in the Ernest Henry copper-gold mine in Australia to Evolution Mining for A$880 million.

Randgold Resources declined 5.05 percent and Fresnillo dropped 4.03 percent. Anglo American weakened by 3.14 percent and Antofagasta surrendered 4.52 percent. Rio Tinto also forfeited 2.45 percent.

Shares of WPP Group soared 1.95 percent after the advertising giant reported better-than-expected headline pre-tax profit and increased revenues in its first half of the year.

Old Mutual tumbled 3.96 percent and Investec lost 5.48 percent, as the rand extended overnight losses against the dollar on reports that a police unit had ordered South Africa's Finance Minister Pravin Gordhan to report to a special police unit by the end of the week over allegations relating to a rogue tax unit.

Homebuilder Persimmon rose 2.19 percent to extend Tuesday's gains while The Berkeley Group advanced 2.68 percent and Taylor Wimpey added 2.06 percent.

Nokia Corp rose 2 percent in Helsinki. The network equipment maker and Ooredoo Myanmar have completed the roll-out and launch of the first 4G service in Myanmar.

SCA soared 7.35 percent in Stockholm after unveiling plans to separately list its two divisions.

Germany's economy expanded in the second quarter on the back of foreign trade and spending, providing support to overall euro area expansion, which was weighed down by flat growth in France and Italy ahead of "Brexit" vote.

Gross domestic product climbed 0.4 percent quarter-on-quarter, in line with the preliminary estimate, but slower than the 0.7 percent expansion seen in the March quarter, detailed data from Destatis showed Wednesday.

U.K. mortgage approvals declined to the lowest level since early 2015, the British Bankers' Association reported Wednesday. The number of mortgages approved in July dropped more-than-expected to 37,662 in July from 39,763 in June.

This was the lowest since January 2015, when approvals totaled 36,649 and also below the expected level of 38,000.

Existing home sales in the U.S. tumbled by much more than anticipated in the month of July, according to a report released by the National Association of Realtors on Wednesday. NAR said existing home sales slumped 3.2 percent to an annual rate of 5.39 million in July from 5.57 million in June. Economists had expected sales to dip by 0.9 percent to a rate of 5.52 million.