By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets struggled for
direction in early trade on Wednesday, as earnings reports from
heavyweights such as Unilever PLC and Novartis AG gave reason for
some optimism, while investors looked ahead to budget talks in the
U.S.
The Stoxx Europe 600 index slipped 0.1% to 287.44 and was
swinging between small gains and losses.
Shares of Alcatel-Lucent posted some of the biggest gains in the
index, up 4%, after Citigroup lifted the telecom-equipment firm to
neutral from sell.
Also among risers, shares of Unilever PLC (UL) picked up 2.2%,
after the consumer-products major reported a 5.4% rise in full-year
profit as sales accelerated.
In the same vein, shares of Novartis AG put on 2.3%. The Swiss
drug maker said that profit rose in the fourth quarter even as
sales stagnated, but that it expects to return to growth next
year.
U.S. budget talks
For the broader stock markets, investors trained their attention
on U.S. deficit talks expected to take place later in the day. The
House of Representatives was due to vote on raising the U.S. debt
limit through the middle of May, while President Barack Obama was
expected to sign the bill if it passes Congress.
U.S. stocks closed higher on Tuesday, supported by encouraging
earnings from tech majors Google (GOOG) and IBM (IBM).
U.S. stock futures pointed to a lower open on Wall Street.
Closer to home, the German DAX 30 index traded in tight ranges
around 7,695.16, as heavyweight industrial firm Siemens AG (SI)
dropped 0.9%. The company said net profit in the three months to
Dec. 31 dropped 12% as orders slipped.
And in France, shares of BNP Paribas SA lost 1.4%, after
Deutsche Bank cut the bank to hold from buy.
The CAC 40 index traded 0.3% lower at 3,730.35.
Among U.K. stocks, shares of TUI Travel PLC gave up 4.4%, as TUI
AG said it won't bid for the British travel agent.
The FTSE 100 index , however, rose 0.1% to 6,186.25, supported
by the gains for Unilever.
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