Investing.com - European stocks edged higher on Wednesday, as market sentiment improved after Moody's decided not to downgrade Spain's credit rating, while investors eyed an upcoming two-day European Union summit.
During European morning trade, the EURO STOXX 50 rose 0.26%, France’s CAC 40 added 0.11%, while Germany’s DAX 30 eased up 0.02%.
Stocks found support after Moody’s confirmed Spain’s credit rating at Baaa3 with a negative outlook, just one notch above junk status and expressed confidence that reforms enacted by the Spanish government and support from the euro zone would ensure that Madrid had continued access to the credit market.
The yield on Spanish 10-year bonds fell to 5.53% following the announcement, the lowest level since April.
Market sentiment has been supported over recent weeks amid hopes that Spain will soon request a bailout from its euro zone partners, but uncertainty over the timing of a request and what form a bailout would take has persisted.
Financial stocks were mostly higher, as shares in French lenders BNP Paribas and Societe Generale jumped 1.79% and 0.95%, while Germany's Deutsche Bank and Commerzbank rose 0.26% and 0.90% respectively.
On the other hand, France's third largest bank, Credit Agricole saw shares tumble 2.39%, after saying it is exiting Greece by agreeing to sell Emporiki Bank to Alpha Bank on terms that will cut net income by about EUR2 billion euros in the third quarter.
Also on the downside, ASML Holding declined 2.63% as Europe’s biggest semiconductor equipment maker forecast fourth-quarter sales that trailed behind projections.
In London, commodity-heavy FTSE 100 edged up 0.13%, supported by gains in mining stocks and after data showed that the unemployment rate in the U.K. ticked down to 7.9% in August from 8.1% the previous month.
Mining giants Rio Tinto and BHP Billiton rallied 2.28% and 1.60%, while copper producers Xstrata and Kazakhmys advanced 1% and 1.90% respectively.
Meanwhile, financial stocks were mixed, as shares in HSBC Holdings added 0.24% and the Royal Bank of Scotland jumped 1.73%, while Lloyds Banking dropped 1.33% and Barclays plunged 1.78% .
In the U.S., equity markets pointed to a moderately lower open. The Dow Jones Industrial Average futures pointed to a 0.02% loss, S&P 500 futures signaled a 0.04% decline, while the Nasdaq 100 futures indicated a 0.11% fall.
Later in the day, the U.S. was to publish government data on building permits and housing starts.
During European morning trade, the EURO STOXX 50 rose 0.26%, France’s CAC 40 added 0.11%, while Germany’s DAX 30 eased up 0.02%.
Stocks found support after Moody’s confirmed Spain’s credit rating at Baaa3 with a negative outlook, just one notch above junk status and expressed confidence that reforms enacted by the Spanish government and support from the euro zone would ensure that Madrid had continued access to the credit market.
The yield on Spanish 10-year bonds fell to 5.53% following the announcement, the lowest level since April.
Market sentiment has been supported over recent weeks amid hopes that Spain will soon request a bailout from its euro zone partners, but uncertainty over the timing of a request and what form a bailout would take has persisted.
Financial stocks were mostly higher, as shares in French lenders BNP Paribas and Societe Generale jumped 1.79% and 0.95%, while Germany's Deutsche Bank and Commerzbank rose 0.26% and 0.90% respectively.
On the other hand, France's third largest bank, Credit Agricole saw shares tumble 2.39%, after saying it is exiting Greece by agreeing to sell Emporiki Bank to Alpha Bank on terms that will cut net income by about EUR2 billion euros in the third quarter.
Also on the downside, ASML Holding declined 2.63% as Europe’s biggest semiconductor equipment maker forecast fourth-quarter sales that trailed behind projections.
In London, commodity-heavy FTSE 100 edged up 0.13%, supported by gains in mining stocks and after data showed that the unemployment rate in the U.K. ticked down to 7.9% in August from 8.1% the previous month.
Mining giants Rio Tinto and BHP Billiton rallied 2.28% and 1.60%, while copper producers Xstrata and Kazakhmys advanced 1% and 1.90% respectively.
Meanwhile, financial stocks were mixed, as shares in HSBC Holdings added 0.24% and the Royal Bank of Scotland jumped 1.73%, while Lloyds Banking dropped 1.33% and Barclays plunged 1.78% .
In the U.S., equity markets pointed to a moderately lower open. The Dow Jones Industrial Average futures pointed to a 0.02% loss, S&P 500 futures signaled a 0.04% decline, while the Nasdaq 100 futures indicated a 0.11% fall.
Later in the day, the U.S. was to publish government data on building permits and housing starts.