LONDON: European stock markets closed mixed on Tuesday, as poor business confidence data from Germany dampened the mood while positive US housing data helped to cap losses.
London's FTSE 100 index of top companies shed 0.20 percent to end the day at 6,787.06 points, while Frankfurt's DAX 30 gained 0.17 percent to 9,938.08 points from Monday's closing level.
The CAC 40 in Paris ended flat at 4,518.34 points. In foreign exchange activity, the euro rose to $1.3586 from $1.3601 late in New York on Monday.
"European equity markets struggled with direction again today as the majority of benchmark indices traded sideways throughout the session," said Kash Kamal, analyst at Sucden Financial Research.
"In what was a busy session for European macro data, the German Ifo index of business sentiment kicked off proceedings as it came in slightly below expectations on the three measures of business climate, current assessment and expectation."
The Ifo business confidence index fell to a six-month low of 109.7 points in June, as companies worry about the impact of crises in Ukraine and Iraq. Market expectations had been for a fractional dip to 110.2 points in June.
"Assessments of the current business situation remained good, but companies were less optimistic about future business developments. The German economy fears the potential impact of the crises in the Ukraine and Iraq," said Ifo chief Hans-Werner Sinn.
Analysts warned the renewed drop in the index may herald slowing growth in Europe's economic powerhouse.
The reading "adds to signs that the recovery in the eurozone's largest economy might already be nearing a peak," said Capital Economics economist Jennifer McKeown.
"The fall is the third in four months, leaving the index at a six-month low and mirroring recent declines in the ZEW investor survey and in the German PMI," she said.
'Speculation driving oil prices':
Across the Atlantic, data showing that sales of new homes hit their highest pace since the market crashed six years ago helped lift sentiment at Wall Street after a poor start. Nasdaq added 0.67 percent while Dow Jones climbed 0.09 percent.
Meanwhile, the head of OPEC sought to slap down fears of disruptions in oil supplies arising from the Iraq crisis, declaring that there is no shortage, and that any increase in price on the markets was due to speculative trading.
In company news in London, global bank HSBC announced the sale of a portfolio of private banking assets in Switzerland for an undisclosed amount to Liechtenstein's LGT Bank.
HSBC added in a statement that the portfolio had assets under management of $12.5 billion at the end of 2013.
The deal, which remains subject to regulatory and other approvals, is expected to be completed in the final quarter of this year. In foreign exchange deals, the British pound fell to $1.6969 from $1.7025 late on Monday.
The euro gained to 80.06 British pence from 79.89 pence. On the London Bullion Market, the price of gold climbed to $1,318.50 an ounce from $1,313.50 on Monday.
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