European Markets Finished Mostly Higher After Choppy Session

(RTTNews) - The majority of the European markets ended a directionless trading session with modest gains. The markets fluctuated between modest gains and losses throughout the trading day. Early weakness in crude oil prices had a negative impact on investor sentiment. A negative reaction to Apple's quarter results in the U.S., as well as the disappointing forecast from Boeing also soured the mood among investors.

The markets recovered some ground in late trade, after a rebound in crude oil prices. The reversal in oil prices came in reaction to U.S. crude inventory data.

Investors were also hesitant to make moves ahead of today's announcement from the U.S. Federal Reserve. While the Fed is widely expected to leave interest rates unchanged, the wording of the accompanying statement will be closely scrutinized.

Eurozone governments must make strong commitment to stability-oriented fiscal policies to support the monetary policy in order to hasten the economic recovery in the single currency bloc, European Central Bank Executive Board member Benoit Coeure said Wednesday.

While there is "no appetite for moving towards a "United States of Europe", "there is a common understanding" that euro area countries need to further integrate their fiscal and economic policies, Coeure said in a speech in Frankfurt.

German banks are in a better position than others in the euro area, but they should not be complacent as intense competition could reduce earnings significantly in the future, European Central Bank Executive Board Member Yves Mersch said Wednesday.

"On the one hand, excessive costs have until now prevented the building up of additional equity. And, on the other hand, competition in the German banking sector is likely to intensify noticeably," Mersch said in a speech in Munich.

The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.35 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.07 percent.

The DAX of Germany climbed 0.59 percent and the CAC 40 of France rose 0.54 percent. The FTSE of the U.K. gained 1.33 percent and the SMI of Switzerland finished higher by 0.10 percent.

In Frankfurt, BASF declined 2.17 percent. The chemicals giant warned of lower-than-expected 2015 earnings after taking a 600-million-euro charge for the fourth quarter.

Infineon Technologies dipped 0.16 percent and ARM Holdings weakened by 1.92 percent in London after Apple posted its slowest growth in iPhone sales since the product's 2007 launch.

In Paris, Airbus tumbled 3.41 percent, after Boeing issued a disappointing 2016 forecast.

In London, Royal Bank of Scotland dropped 1.99 percent after saying it would take a 3.6 billion-pound hit to the value of its assets.

Copper miner Antofagasta fell 0.69 percent after missing its 2015 output target.

Aberdeen Asset Management rose 3.09 percent and Ashmore Group gained 3.54 percent. Both stocks were upgraded to "Buy" at Numis Securities.

Sage Group climbed 7.49 percent after it reported that its Group organic revenue increased by 6.6% for the first three months of the year. The company stated that it is confident that the business remains on course for fiscal year 2016 full year guidance.

Novartis declined 3.71 percent in Zurich. The company reported that fourth quarter earnings per share decreased to $0.44 from $0.62 last year.

Fiat Chrysler decreased 0.86 percent in Milan. The company announced that its net profit for the fourth quarter slid to 251 million euros from last year's 420 million euros.

German consumer confidence is set to remain unchanged at an elevated level in February as heightened terror threat and refugee crisis have not yet had a lasting effect on sentiment, survey results from GfK showed Wednesday.

The forward-looking GfK Consumer Confidence Index showed a score of 9.4 points for February, unchanged from January, the Nuremberg-based market research group GfK said Wednesday. Economists had expected slight easing to 9.3 points.

French consumer confidence unexpectedly increased at the start of the year as intentions to make big purchases strengthened, standard of living expectations increased, while fears of unemployment sharply decreased. The consumer confidence index rose to 97 from 96, figures from INSEE showed Wednesday. Economists had expected the score to remain unchanged.

Italy's consumer confidence strengthened unexpectedly at the start of the year, while business sentiment decreased more-than-expected, the statistical office ISTAT reported Wednesday. The consumer confidence index climbed to 118.9 in January from 117.7 in December. Economists had forecast the index to fall to 117.0.

U.K. mortgage approvals declined unexpectedly to a 7-month low in December, the British Bankers' Association reported Wednesday. The number of mortgages approved in December fell to 43,975 from 44,533 in November. It was the lowest since May, when it totaled 42,945. It was forecast to rise to 45,500.

U.K. house prices increased at a slower pace in January, data from the Nationwide Building Society showed Wednesday. House prices climbed 4.4 percent year-on-year in January, slightly slower than a 4.5 percent rise in December. Economists had forecast the annual growth to accelerate to 4.6 percent.

Reflecting strength across most of the country, the Commerce Department released a report on Wednesday showing that new home sales in the U.S. increased by much more than expected in the month of December.

The report said new home sales jumped 10.8 percent to an annual rate of 544,000 in December from the revised November rate of 491,000. Economists had expected new home sales to climb 2 percent to a rate of 500,000 from the 490,000 originally reported for the previous month.