Investing.com - European stocks opened higher on Tuesday, but gains were expected to remain limited as markets returned their focus to Deutsche Bank (DE:DBKGn) and as concerns over a potential hard Brexit continued to weigh.
During European morning trade, the EURO STOXX 50 advanced 0.80%, France’s CAC 40 climbed 0.83%, while Germany’s DAX 30 gained 0.70%.
Markets were jittery following reports late last week that Deutsche Bank would have to pay a $14 billion to settle with the U.S. Department of Justice. But AFP reported on Friday that the amount could be reduced to $5.4 billion.
Talks were said to be ongoing according to the Wall Street Journal and no settlement had been reached on Tuesday morning.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rallied 1.29% and 1.49%, while Commerzbank (DE:CBKG) and Deutsche Bank climbed 0.50% and 0.97%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) advanced 0.77%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) gained 0.72% and 0.86% respectively.
Elsewhere, Lufthansa AG (DE:LHAG) plummeted 2.42% after the airline’s supervisory board approved over the weekend the decision to buy the remaining 55% of SN Airholding, the parent company of Brussels Airlines.
Volkswagen (DE:VOWG_p) AG added to gains, with shares up 1.21% following reports the automaker agreed to pay $1.2 billion to its 652 US dealers as compensation for the diesel emissions scandal.
Peugeot SA (PA:PEUP) saw shares jump 1.86% following reports the automaker is working on a strategy to make another entry into India, a market where it says it sees great potential.
In London, FTSE 100 rallied 1.01%, boosted by Intertek Group (LON:ITRK), whose shares surged 4.07% after analysts at Jefferies Group upgraded their rating on the stock to “buy”.
Financial stocks were also broadly higher, as the Royal Bank of Scotland (LON:RBS) climbed 0.59% and HSBC Holdings (LON:HSBA) advanced 1.16%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) rallied 1.28% and 1.43% respectively.
In the mining sector, stocks added to gains. Shares in BHP Billiton (LON:BLT) jumped 1.01% and Glencore (LON:GLEN) gained 1.39%, while Rio Tinto (LON:RIO) climbed 1.52%.
On the downside, Astrazeneca (LON:AZN) shares dropped 0.97% following news the company’s heart drug Brilinta failed to help patients with serious circulatory problems in their legs.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.21% gain, S&P 500 futures showed a 0.23% rise, while the Nasdaq 100 futures indicated a 0.27% increase.