European stocks ex-London drop ahead of UK Budget

European stocks opened the day on a positive note, extending gains for the third straight session on Wednesday. However, the upside was short-lived amid resurgence of impending concerns over the Italian banks crisis.

Moreover, markets turn cautious ahead of the UK Autumn Forecast Statement (Budget) and FOMC minutes and hence, resort to profit-taking after two back-to-back sessions of gains. However, the London stocks buck the trend and advance on the back of ongoing strength in mining stocks.

Meanwhile, Germany's DAX 30 index trades -0.47% lower around 10,660 levels, while the UK's FTSE 100 index advances +0.52to 6,855. Among the other indices, the French CAC 40 index drops -0.37% to 4,532 while the pan-European Euro Stoxx 50 index loses -0.40% to now trade around 3,030 points.