European investors cautious ahead of key ECB meeting

LONDON: Eurozone stocks held steady on Wednesday as investors waited for policy signals from the ECB, while losses in the mining sector and better-than-expected domestic growth figures held down London's FTSE 100.

Britain's GDP grew 0.4 percent in the third quarter, slightly outperforming expectations.

The pound, which has been under pressure over suggestions that a hike in interest rates may be delayed, spiked after the positive GDP results, rising against the dollar and the euro.

However the rise in the value of the pound put pressure on stocks, as many FTSE 100 firms have most of their earnings in dollars, and a rebound in the pound will crimp profits when converted into sterling. In afternoon trading the index had slid 0.4 percent.

"Weakness in the mining sector has pushed the FTSE 100 into the red, and the spike in sterling due to the good UK GDP numbers accelerated the negative move," said David Madden, market analyst at CMC Markets UK.

Losses in the mining sector were triggered in part by a sharp fall in copper prices overnight.

Trading was tight in Europe ahead of the European Central Bank's policy meeting Thursday, at which it is expected to announce a big reduction in its bond-buying stimulus as the eurozone economy picks up.

Frankfurt's DAX 30 index dipped 0.05 percent while the CAC 40 in Paris added 0.1 percent.

"According to some sources, the ECB could reduce the size of its monthly purchases programme by half to 30 billion euros, the truth is nobody really knows what to expect," said analyst Ipek Ozkardeskaya from LCG Insight.

"Traders will likely lie in wait until they have more clarity on the ECB's policy outlook."

- Nikkei record run ends -

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In Asia, a phenomenal run of 16 straight days of gains finally ended in Tokyo on Wednesday as a late bout of profit-taking saw the Nikkei close in negative territory for the first time this month.

However, most other Asian markets rose following another record close on Wall Street on Tuesday, as a fresh round of strong corporate earnings reinforced confidence in the global economy.

Hong Kong added 0.5 percent following two days of losses. Shanghai closed up 0.3 percent after China's President Xi Jinping unveiled his top decision-making body. This contained no potential successor, raising speculation he intends to stay on past the end of his second five-year term as ruling party chief.

Wall Street opened lower on Wednesday, with the Dow dipping 0.02 percent in the first minute of trading.

"US stocks are mostly dipping in early action following yesterday's solid rebound, with the markets digesting another flood of earnings reports," said analysts at Charles Schwab brokerage.

The stock rally paused even though data showed US manufacturers saw rising sales of major durable goods for the second straight month in September, boosted by orders for aircraft and telecoms equipment.

- Key figures around 1330 GMT -

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London - FTSE 100: DOWN 0.4 percent at 7,497.99 points

Frankfurt - DAX 30: DOWN 0.05 percent at 13,007.03

Paris - CAC 40: UP 0.1 percent at 5,401.71

Madrid - IBEX 35: FLAT at 10,207.10

EURO STOXX 50: FLAT at 3,611.01

New York - DOW: DOWN 0.02 percent at 23,437.94

Tokyo - Nikkei 225: DOWN 0.5 percent at 21,707.62 (close)

Hong Kong - Hang Seng: UP 0.5 percent at 28,302.89 (close)

Shanghai - Composite: UP 0.3 percent at 3,396.90 (close)

Euro/dollar: UP at $1.1792 from $1.1760 at 2100 GMT

Pound/dollar: UP at $1.3239 from $1.3131

Dollar/yen: UP at 113.96 yen from 113.93 yen

Oil - West Texas Intermediate: DOWN 30 cents at $52.17 per barrel

Oil - Brent North Sea: UP four cents at $58.29 per barrel