Major stock indices in Europe trading mixed

European stocks trading mixed as the rise in price of banks shares compensated the negative dynamics in the mining and energy sectors. Investors are also waiting for the results of stress tests of European banks, which will be published today after the market closes.

Trading dynamic was also influenced by statistics for the euro area and Britain. Preliminary data from Eurostat showed that in the 2nd quarter Eurozone GDP grew by 0.3 per cent compared with an increase of 0.6 percent in the first quarter, in line with expectations. This slow growth was last recorded in the third quarter of 2015. In annual terms, growth slowed to 1.6 percent from 1.7 percent. It was expected that GDP will increase by 1.5 percent.

Another report showed that in July consumer prices in the eurozone rose by 0.2% after rising 0.1% in June. Analysts had expected the index to rise by 0.1%. Core CPI, which does not take into account the volatile energy and food prices, rose in July by 0.9%, which coincided with the change in June.

With regard to data in the UK, the Bank of England reported that the number of mortgage approvals in Britain fell sharply at the end of June to the lowest level since May 2015, but consumer lending expanded at the fastest pace in nearly 11 years. In June 64.766 mortgages were aprovd compared to 66.722 in May. Consumer lending has increased in June by 10.3 percent y/y, recording the fastest annual growth rate since October 2005. As a result, lending volume amounted to 1.837 billion vs 1.599 billion pound in May (revised from 1.503 billion. Lbs). At the same time, the Bank of England forecast a slowdown in credit growth in the second half of this year due to Brexit.

The composite index of Europe's largest enterprises Stoxx 600 added 0.3%. Since the beginning of the month the index rose by 3.2 percent. However, in July it saw record outflows from European equity and lower trading volume, indicating a lack of conviction in the rally. Stoxx 600 remains below its level of 23 June, the day of a referendum on Britain's membership in the EU, while the US and Asian indices have regained all the losses.

"The main fear was a possible market downturn in the second half of the year, but so far there was no evidence that we are moving in this direction - said Guillermo Samper, head of trading at MPPM EK -. It took some time to understand that expectations was much worse than the actual situation. The accounts of many companies exceeded forecasts, and some of them have even revised their estimates upward. "

Capitalization of Barclays Plc jumped 6.6 percent amid reports that the core business profit increased by 19 percent, to 2.4 billion., exceeding the performance of European competitors. Also, the bank said that the performance of non-core businesses will have less pressure on the overall profitability in 2017.

Shares of Banco Bilbao Vizcaya Argentaria SA rose 4.6 percent and UBS Group AG rose 3.3 percent after reported a quarterly profit that topped analysts' estimates.

Shares of Natixis SA rose 6.2 percent, since the amount of earnings and revenue forecasts turned out to be greater tha forecasts.

The price of L'Oreal SA fell 4.5 percent after the sales did not meet expectations. The company stated that the reason for this was the deterioration of conditions in France.

Capitalization of Foxtons Group Plc fell 7.7 percent, as the report pointed to a decline in revenues in the first half the size.

At the moment:

FTSE 100 -8.71 -0.13% 6712.35

DAX +46.33 10321.26 + 0.45%

CAC 40 +5.34 4425.92 + 0.12%