European stock markets struggled for direction in a choppy session on Wednesday, with major banks pushing to move higher, while drug makers added pressure. The Stoxx Europe 600 index was 0.3% higher at the latest, but swinging between small gains and losses through most of the early trade. Banks helped lift the index. In the U.K., heavyweight HSBC Holdings PLC rose 1%, Barclays PLC was up 1% and Standard Chartered PLC added 0.9%. Also higher, J Sainsbury PLC took on 3% after the supermarket retailer lifted full-year dividend to 16.1 pence from 15.1 pence and slightly beat analyst expectations for the year. The FTSE 100 index was slightly higher at 5,556.51, Market Watch reported. In Germany, Commerzbank AG rose 2.8%, helping lift the DAX 30 index 0.8% to 6,492.84. Allianz SE was also on the rise, up 0.9%, after first-quarter profit rose nearly 60%, boosted by strong contributions from its key divisions and a decline in claims cost for major disasters. Outside the main index in Frankfurt, Kloeckner & Co. SE lost 5.4% after posting a larger-than-expected loss for first-quarter due to poor metals demand and weak prices in Europe. Drug makers were also lower in Europe. Novartis AG declined 0.7%, while Novo Nordisk AS shed 1%. In France, the CAC-40 index traded 0.6% higher at 3,141.00, with Michelin up 2.5%. The Spanish IBEX 35 index was among few bourses trading in negative territory and gave up 0.9% to 6,946.90. Bankia SA fell 3.1% after J.P. Morgan Cazenove cut the stock to underweight from neutral amid expectations the Spanish government will inject capital into the ailing bank. They said this is likely via convertible equities, which would be dilutive for current shareholders.
