LONDON (AP) - European stock markets rose modestly Wednesday after a batch of solid corporate earnings though trading remained light as many investors awaited key economic news towards the end of the week. In Europe, the FTSE 100 index of leading British shares was up 10.88 points, or 0.2 percent, at 4,682.25, while Germany's DAX rose 4.49 points, or 0.1 percent, to 5,421.51. The CAC-40 in France was 19.78 points, or 0.6 percent, higher at 3,496.15. Earnings, which have helped drive many of the world's markets up to 2009 highs over the last few weeks, helped Europe's main indexes push into positive territory despite earlier Asian losses. Most interest was on earnings from bailed out British bank Lloyds Banking Group PLC. Though it reported a massive 3.1 billion pound ($5.3 billion) loss for the first half of the year, the share price rose 8.5 percent to 91.41 pence as investors backed management's confidence that most of the bad loans had been identified and accounted for. Other banks in Britain rose in Lloyds' slipstream, most notably Royal Bank of Scotland Group PLC, which is majority-owned by the British government and unveils its own results on Friday. Its shares were up 2.7 percent, along with Barclays PLC, which earlier this week reported bumper profits for the second quarter of the year. In France, shares in Societe Generale SG spiked more than 6 percent to euro49.14 after the bank posted better than expected second-quarter profits and revealed that its corporate and investment banking division saw its revenues nearly double. Meawnhile, in Germany, Adidas AG topped the DAX leaderboard, rising nearly 8 percent to euro32.80, after the sportswear company indicated that conditions may be improving. Though the earnings merited interest in the markets, most investors remained cautious ahead of some key economic events this week, including interest rate decisions from the Bank of England and the European Central Bank. Because both banks are set to keep their benchmark rates unchanged at 0.5 percent and 1 percent respectively, more interest will be on what the two say about alternative measures to boost the quantity of money in their respective economies. While the European Central Bank is unlikely to change course and pursue a more aggressive strategy, the Bank of England may well decide that it has already pumped more than enough money into the economy, especially as another monthly survey showed the British services sector is growing strongly. Most interest in the markets this week will be on Friday's U.S. jobs report for July, which often sets the tone in the markets for a few weeks. Unemployment stands at a 26-year high of 9.5 percent and is expected to eventually top 10 percent. Investors are looking for the pace of layoffs to slow so the economy can heal. "With the BoE and ECB rate decisions as well as the nonfarm payroll figure still to come this week the risk of traders booking profits could see the market subdued as we wait in the calm before the storm of the next two days," said Jimmy Yates, head of equities at CMC Markets. The focus is slowly turning to the jobs data in the U.S. and all eyes will be on a similar survey later from the ADP payrolls firm. Dow futures were down 14 points, or 0.2 percent, at 9,273, while the broader Standard & Poor's 500 futures fell 1.6 point, or 0.2 percent, to 1,003.10. Earlier in Asia, Japan's Nikkei 225 stock average closed down 122.48 points, or 1.2 percent, at 10,252.53 amid weakness in automakers after Toyota Motor Co., the world's biggest car company, reported its third straight quarterly loss previous day. Hong Kong's Hang Seng slipped 301.66, or 1.5 percent, to 20,494.77 and South Korea's Kospi dropped 0.4 percent to 1,559.47. Elsewhere, China's Shanghai Composite Index retreated 1.2 percent, Australia's benchmark fell 1 percent and Singapore's index was off 1.9 percent. Markets in the Philippines were closed for the funeral of former President Corazon Aquino. Oil prices dropped below $71 a barrel as a weeklong rally stalled. Benchmark crude for September delivery was down 49 cents to $70.93 in electronic trading on the New York Mercantile Exchange. The dollar fell 0.1 percent to 95.16 yen while the euro was steady at $1.4391.

Source