Investing.com – European equities traded higher on Tuesday with German stocks hitting record highs as the euro zone’s leading economy received an upgrade to its growth outlook and market players sold off the pound after digesting Bank of England (BoE) governor Mark Carney’s dovish comments.
Nearing midday trade in Europe, the benchmark Euro Stoxx 50 gained 0.12%, France’s CAC 40 rose 0.30% while Germany’s DAX 30 traded up 0.28%.
On a day with no major economic reports on either side of the Atlantic, the Ifo economic institute raised its 2017 growth forecast for Germany to 1.8% from the prior 1.5%.
“We're experiencing a first half which is so strong that the impetus will carry on into the coming year,” Ifo head of economic research Timo Wollmershaeuser said in a statement on Tuesday.
Wollmershaeuser pointed to strength in the German domestic economy, backed by construction and consumption, and indicated that “the improving economies of the euro zone and the rest of the world are significantly boosting exports.”
Market attention was also focused on the U.K. as BoE chief Mark Carney shrugged off last week’s surprise dissent from policymakers who preferred to raise rates and insisted that “now is not yet the time to begin that adjustment.”
The pound showed weakness against major rivals on the remarks with cable losing the 1.27 level.
In company news, German broadcaster Prosiebensat 1 Media AG (DE:PSMGn) announced an agreement to sell its online travel agency Etraveli to CVC Capital Partners in a deal valued at €508 million ($567 million).
Shares in Barclays (LON:BARC) moved slightly lower as news surfaced that the British bank and four of its former executives would be charged with fraud in a case involving a loan facility made available to Qatar that helped the financial institution raise capital during the 2008 financial crisis.
Meanwhile, oil prices remained under pressure in mid-day European trading, giving up earlier gains, as market players market weighed ongoing efforts by major producers to cut output and reduce a global glut against a relentless increase in U.S. drilling activity.
European energy stocks traded lower, as French oil and gas major Total SA (PA:TOTF) lost 0.68%, Italy’s ENI (MI:ENI) fell 0.29%.and Norwegian rival Statoil (OL:STL) traded down 1.24%.
Financial stocks were mostly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rose 0.60% and 0.40%, respectively, while Germany’s Deutsche Bank (DE:DBKGn) gained 0.55% though rival Commerzbank (DE:CBKG) lost 0.50%.
Among peripheral lenders, Italian banks Intesa Sanpaolo (MI:ISP) and rival Unicredit (MI:CRDI) rose 0.55% and 0.25%, respectively, but Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) gave up 0.20% and 0.51%, respectively.
In London, the commodity-heavy FTSE 100 inched up 0.04% as concerns over Brexit negotiations continued to weigh and mining stocks weighed on the benchmark.
Shares in Glencore (LON:GLEN) sank 2.19%, Anglo American (LON:AAL) fell 0.86%, while BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) traded down 1.36% and 1.07%, respectively.
Energy stocks moved lower, as BP (LON:BP) gave up 0.48% and rival Royal Dutch Shell (LON:RDSa) retreated 0.89%.
Financial stocks were mixed, with shares in HSBC Holdings (LON:HSBA) off 0.48% and Royal Bank of Scotland (LON:RBS) gaining 0.72%, while Lloyds Banking (LON:LLOY) and Barclays (LON:BARC) traded down 1.09% and 0.34%, respectively.
In the U.S., stock futures pointed to a flat to higher open. The Dow Jones Industrial Average futures edged forward 0.05%, S&P 500 futures were unchanged, while the Nasdaq 100 futures advanced 0.14%.