European stocks opened with a cautious tone Wednesday as ongoing political concerns in the region continued to offset underlying corporate and economic fundamentals.
The region-wide Stoxx Europe 600 Index, the broadest measure of equity market performance, was marked 0.42% higher by 08:30 GMT even as major indices around the region were hovering little-changed from Tuesday's closing levels.
Britain's FTSE 100 drifted about 6 points lower in the opening 30 minutes despite better-than-expected full-year earnings from Rio Tinto plc (RIO) .
Rio posted stronger-than-expected full year earnings Wednesday and boosted its annual divided as the world's second-largest miner took full advantage of rising commodity prices.
Full year net profit came in at $5.1 billion, the company said, up from a loss of $866 million in 2015 and ahead of analysts' forecasts of $4.87 billion. The group will pay a full year dividend of $1.7 per share, down from 2015's $2.15 payout but firmly ahead of the higher end of market forecasts and will also buyback $500 million worth of shares.
Rio shares rose 2.66% by 08:30 GMT, leading FTSE gainers and extending their three month advance past 23%.
Germany's DAX index rose 0.06% while the CAC-40 in Paris added 0.32%, helped by solid gains for construction group Vinci SA and drugmaker Sanofi SA.
Political risk, however, was once again dominating market trading, with the euro extending Tuesday's decline with a 0.32% decline against the U.S. dollar to 1.0647 and safe-haven German bund yields falling 1 basis point to 0.34%.
Greece's government bond yields were also in focus, as benchmark 2-year borrowing costs spiked past 10% -- levels not seen since the country narrowly averted being chucked out of the single currency back in the summer of 2015 -- amid persistent concern that promises linked its €85 billion bailout are not being adhered to in Athens.
