European Markets Finished Mostly Lower As Investors Await Fed Minutes

(RTTNews) - The majority of the European markets ended Wednesday's session in negative territory. The markets were impacted by some weaker than expected trade data from China and a ratings downgrade of Italy by S&P. Investors are also awaiting the release of the minutes from the most recent FOMC meeting later today.

The minutes of the Federal Reserve's June meeting are scheduled to be published later in the day. The report may offer clues as to when the central bank may start tapering its bond-buying program. Fed Chairman Ben Bernanke is also due to speak on economic policy at a conference later today.

Standard & Poor's lowered the sovereign rating of Italy by one notch to BBB from BBB+, citing weak economic prospects. S&P also put a negative outlook on the country's long-term rating.

China posted a merchandise trade surplus of $27.1 billion in June, the government said on Wednesday. That was slightly below expectations for a surplus of $27.8 billion following the $20.42 billion surplus in May.

Exports were down 3.1 percent on year - well below estimates for an increase of 3.7 percent after adding 1.0 percent in the previous month. Imports dipped an annual 0.7 percent versus forecasts for a jump of 6.0 percent after easing 0.3 percent a month earlier.

The Euro Stoxx 50 index of eurozone bluechip stocks declined by 0.33 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.10 percent.

The DAX of Germany dropped by 0.11 percent and the CAC 40 of France fell by 0.08 percent. The FTSE 100 of the U.K. decreased by 0.12 percent, but the SMI of Switzerland gained 0.35 percent.

In Frankfurt, K+S declined by 3.96 percent. The potash maker was downgraded to ''Sell'' from ''Neutral'' at UBS.

Fraport, which reported traffic data for June, dropped by 0.36 percent.

Commerzbank fell by 1.42 percent, while Deutsche Bank climbed by 1.88 percent. Credit Suisse upgraded Deutsche Bank to ''Outperform.''

Software AG surged by 6.57 percent, after Morgan Stanley upgraded it to "Equal weight" from "Underweight."

Beiersdorf gained 1.96 percent, after Morgan Stanley raised its rating on the stock.

United Internet rose by 2.56 percent. The stock was upgraded to ''Overweight'' from ''Neutral'' at JPMorgan.

In Paris, Sodexo finished up by 1.88 percent. The company reported sales for the first nine months of the year.

In London, mining stocks turned in a weak performance, in response to the data from China. Anglo American declined by 1.09 percent and BHP Billiton lost 0.46 percent. Fresnillo dropped by 4.99 percent and Glencore Xstrata fell by 2.50 percent. Rio Tinto decreased by 0.99 percent and Vedanta Resources finished lower by 2.93 percent.

Burberry Group, which reported first-quarter sales growth, increased by 4.79 percent.

Tesco advanced by 1.72 percent, after Exane BNP upgraded the stock to "Outperform" from "Neutral."

Wm. Morrison Supermarkets climbed by 1.44 percent, after Exane BNP upgraded it to "Neutral" from "Underperform."

Germany's EU harmonized inflation accelerated in June as initially estimated, final data released by the Federal Statistical Office showed Wednesday. Inflation as per the harmonized index of consumer prices (HICP) increased to 1.9 percent in June from 1.6 percent in May. The outcome matched the preliminary estimates.

Italy's industrial production decreased at a slower pace in May, data released by statistical office Istat showed Wednesday. Industrial production decreased a calendar-adjusted 4.2 percent on an annual basis in May, which was slower than the 4.7 percent fall seen in April. Output recorded negative growth for the twenty-first consecutive month.

Industrial production in Greece declined in May, after rebounding modestly in the previous month, as most of the industrial sectors recorded fall in activity, data from the Hellenic Statistical Office showed Wednesday. Industrial production fell 4.6 percent on an annual basis in May, revering the previous month's 0.3 percent increase, which marked a moderate rebound after many months of continuous declines.

Wholesale inventories in the U.S. unexpectedly decreased in the month of May, according to a report released by the Commerce Department on Wednesday, although the report also showed a significant increase in wholesale sales for the month.

The Commerce Department said wholesale inventories fell by 0.5 percent in May following a revised 0.1 percent decrease in April. The drop surprised economists, who had been expecting inventories to rise by 0.3 percent compared to the 0.2 percent increase originally reported for the previous month.