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Market Update

European Stocks Tread Water

European markets were little-changed in cautious trades early Tuesday as investors moved to the sidelines ahead of a key policy statement by the European Central Bank later this week.

The FTSE 100 was up 0.1%, the CAC 40 Paris slipped 0.2% while the DAX Franfurt was flat at 9:06 a.m. London time.

Investors exercised caution ahead of a meeting of the European Central Bank due on Thursday while U.S. Congressional vote on Syria next week was also another cause of concern.

Data scheduled to be released today included U.K. construction index purchasing managers', euro-zone purchasing price index and a reading on Spanish business confidence.

Official statistics released earlier in the day showed unemployment rate in Spain remained unchanged in August, as against expectations of a drop of 5,200.

Stocks on the Move

Financials were trading mixed. BNP Paribas SA slipped 0.5% and Societe Generale SA retreated 0.9%.

In London, Lloyds Banking Group slipped 0.4%.

But German banks were trading higher. Commerzbank AG gained 0.4% and Deutsche bank AG rallied around a percent.

In corporate news, French cement maker Lafarge SA agreed to sell its majority stake in Honduras unit to Columbia based Cementos Argos for 232 million euros. Shares of Lafarge slipped 0.3%.

Elsewhere, shares of Nokia Oyj soared 35% after Microsoft said it would buy most of Nokia's devices and services business in $5 billion deal.

Among resources stocks, BHP Billiton Plc. was up 0.2% and Rio Tinto Plc. added 0.4%. But others were trading mostly lower, with Anglo American Plc. down 0.5% and Glencore Xstrata Plc. slipping 0.1%.