Europe close: Stocks end mixed, but Basic Resources snap higher

(Sharecast News) - European shares ended on a mixed note as investors eyed a US Federal Reserve decision on rates the next day. They were also digesting the announcement of fresh economic stimulus in China, albeit alongside downbeat readings for German business confidence and euro area bank lending.

The pan-regional Stoxx 600 index was up 0.48% at 467.92 with the main regional bourses putting in a mixed showing.

To the downside, France's Cac-40 drifted lower by 0.16% to 7,415.45 and Spain's Ibex 35 dipped 0.25% to 9,519.20.

At the sector level on the other hand, the Stoxx 600 sector index for Basic Resources shot 4.24% higher on the back of the news out of Beijing.

The Federal Reserve began its two-day policy-setting meeting on Tuesday. Investors were looking for any clues on the future direction of monetary policy. Rate decisions are also due from the European Central Bank and Bank of Japan.

Traders were also looking to US corporate earnings, with tech giants Microsoft and Google parent Alphabet due to release results.

In economic news, the IFO Institute's business climate index for Germany fell to 87.3 in July from a revised 88.6 in June (consensus: 88.0).

Adding to the gloom, the results of the European Central Bank's second quarter Bank Lending Survey showed that companies' demand for credit was "crashing", said Melanie Debono at Pantheon Macroeconomics.

However, Pantheon's chief Eurozone chief economist, Claus Vistesen, believed the results were compatible with two more rate hikes out of the central bank.

In equity news, shares in Idorsia slumped as the Swiss pharma company released results and announced a cost-cutting pan to stem cash burn.

Airbus was also under the cost after the manufacturer of the engines for its A320neo, Raytheon, warned that some of the turbines needed to be removed and inspected.

Consumer goods giant Unilever gained as it reported a rise in first-half profits.