* STOXX ends flat, STOXXE ends 0.2% higher
* Banks weak ahead of ECB meeting
* Tech, autos gain on trade optimism
(Updates to close)
By Sruthi Shankar and Medha Singh
July 24 (Reuters) - European shares closed at a two-week
high on Wednesday as a slide in commodity stocks offset gains
for chip and car makers ahead of a hotly-anticipated European
Central Bank meeting.
The pan-European STOXX 600 index .STOXX closed up barely
0.05%. Britain's FTSE 100 .FTSE underperformed with a 0.7%
loss as miners slid on the back of falling iron ore prices in
China. .L
Euro zone stocks .STOXXE , however, added 0.2% as optimism
over U.S.-China talks helped trade-sensitive sectors including
autos and technology, adding to upbeat results from chip
bellwether Texas Instruments TXN.O overnight. European chipmakers ASM International ASMI.AS , Infineon
Technologies IFXGn.DE and Siltronic WAFGn.DE gained between
2.3% and 6.5%.
Daimler AG DAIGn.DE gained 2.5% after saying it would
intensify cost cuts after swinging to a quarterly loss.
Traders maintain that the next major move for the market may
hinge on how strong a signal the ECB sends on Thursday about
support for growth, and the U.S. Federal Reserve's response a
week later.
"There is a feeling in this market that everything hangs on
the central banks and they have to satisfy markets," said Craig
Erlam, senior market analyst at Oanda in London.
"If you look at earnings, it's not that we are looking for
companies to excel. Small beats and misses won't be latched onto
as much as they would be, if everything wasn't hanging on the
central banks right now."
SHAKY
Stocks have been shakier in July since recovering from a
strong selloff in May that was the worst in more than two years.
Investors have lowered forecasts for corporate earnings and
the latest batch of results accompanied purchasing manager (PMI)
surveys that showed euro zone business growth was weaker than
expected in July and would get worse. Banks .SX7P were among the hardest hit, falling 0.7%, as
euro zone government bond yields slid after the weak data, which
lifted bets the ECB would have to point strongly to policy
loosening - or even deliver some. Money markets are now pricing in around a 53% chance of a
10-basis-point rate cut by the ECB, with a cut fully priced in
for September.
Shares in Deutsche Bank DBKGn.DE , in the midst of sweeping
changes to reboot its business, fell nearly 2% after it reported
a bigger than expected loss. Those in Britain's luxury car maker
Aston AML.L sank 26% after it cut its annual forecast for
wholesale sales.
Commodities-linked stocks .SXPP slid 1.3%, with a fall in
iron ore prices and a Liberium downgrade on miners taking shares
of Rio Tinto RIO.L down nearly 5%. IRONORE/
That offset gains for Broadcaster ITV ITV.L , up 6.8% after
it said a strong contribution to online revenue from reality
show "Love Island" helped limit a decline in first-half ad
revenue. Finland's Valmet VALMT.HE extended losses for a second
day, falling nearly 8% to the bottom of STOXX 600 after the
industrial machinery and equipment maker reported quarterly
results below estimates.