European Markets Held Onto Modest Gains After Choppy Session

(RTTNews) - The European markets fluctuated between small gains and losses in early trade Wednesday, but turned higher around midday. The markets pared their gains in late trade, but managed to hold on to modest gains. The late weakness was largely due to the weak opening on Wall Street.

The early struggles were due in part to the unexpected drop in German industrial production. Traders were also in a cautious mood ahead of the Beige Book report later today and Thursday's ECB meeting.

The European Central Bank's latest monetary policy announcement is due tomorrow morning. The ECB is expected to leave interest rates unchanged but may announce an extension of its quantitative easing program.

The pan-European Stoxx Europe 600 index advanced 0.24 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 0.70 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.18 percent.

The DAX of Germany climbed 0.62 percent and the CAC 40 of France rose 0.61 percent. The FTSE 100 of the U.K. gained 0.30 percent and the SMI of Switzerland finished higher by 0.20 percent.

In Frankfurt, Volkswagen rose 1.36 percent on a Bloomberg report that it is in advanced talks with Anhui Jianghuai Automobile Co. about jointly producing electric passenger vehicles in China.

Daimler increased 1.39 percent and BMW advanced 0.59 percent.

In London, Ashtead Group surged 3.34 percent. The construction equipment provider lifted its full-year guidance after reporting a 4 percent rise in first-quarter pretax profit.

Engineering firm Weir Group climbed 4.53 percent after Morgan Stanley upgraded its recommendation on the stock.

Sports Direct International sank 8.67 percent after the embattled retailer forecast profit below analysts' estimates following a turbulent year.

House builder Barratt Developments dropped 2.92 percent despite posting record pre-tax profits in the year to June, in line with its previous guidance.

Investment products provider Hargreaves Lansdown fell 0.07 percent after announcing the departure of its chief executive, Ian Gorham.

Just Eat tumbled 5.44 percent after Amazon said it would launch a free one-hour restaurant delivery service for Prime members in London.

Germany's industrial production declined the most in nearly two years in July as weak demand from China and concerns about the 'Brexit' vote weighed on manufacturing activity, data from Destatis showed Wednesday.

Industrial output declined 1.5 percent month-on-month in July, confounding expectations for a 0.1 percent increase. This was the biggest fall since August 2014, when production slid 2.5 percent.

France's foreign trade deficit increased more-than-expected in July, as exports fell and imports rose, figures from the Customs Office showed Wednesday. The trade deficit widened to EUR 4.5 billion in July from EUR 3.4 billion in the previous month. Economists had expected the deficit to rise to EUR 3.6 billion.

The French current account deficit widened in July on weak foreign trade, the Bank of France reported Wednesday. The current account deficit increased to EUR 2.6 billion from EUR 0.8 billion in June.

U.K. industrial production grew marginally in July, figures from the Office for National Statistics showed Wednesday. Industrial output gained 0.1 percent month-on-month in July after staying flat in June. Nonetheless, the monthly growth was in contrast to a 0.2 percent fall economists had expected.

The British manufacturing sector registered the biggest contraction in output in a year in July, while overall industrial production managed to expand on oil and gas extraction.

Manufacturing output shrank 0.9 percent in July from June on a sharp decline in pharmaceutical production, data from the Office for National Statistics showed Wednesday. Economists had expected output to drop moderately by 0.3 percent after easing 0.2 percent in June.

British house price inflation eased at a faster-than-expected pace in August to the lowest level in nearly three years, survey data from the mortgage lender Halifax revealed Wednesday. House prices climbed 6.9 percent in three months to August from last year after rising 8.4 percent in the three months ended July. Economists had expected the inflation to slow to 7.0 percent.