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European stocks gain as German data beats; DAX up 0.5%

Published 05/09/2017, 05:10 AM
Updated 05/09/2017, 05:10 AM
© Reuters.  European equities trade higher on upbeat German data

Investing.com – European stock markets traded higher on Tuesday as a string of German data showed that the motor of the euro zone economy continued to forge ahead at the end of the second quarter.

Nearing midday trade in Europe, the benchmark Euro Stoxx 50 gained 0.59%, France’s CAC 40 rose 0.42% while Germany’s DAX 30 traded up 0.49%.

German exports rose 0.4% in March, beating expectations and hitting a record high of €118.2 billion ($129 billion).

Demand was also strong in the euro area’s largest economy as imports surged 2.4%, beating expectations for a 1.0% gain and also hitting a record high of €92.9 billion ($101.4 billion).

Furthermore, while Germany’s industrial production showed signs of weakness in March, registering a 0.4% decline, that was smaller than the drop of 0.6% that consensus had expected.

In other positive economic news, retail sales in the U.K. jumped 5.6% in April from the year before, well above expectations for a 0.5% rise, although the British Retail Consortium said that it “largely reflected the timing of the Easter holiday which fell in March last year but in April in 2017.”

In downbeat data, Italy’s retail sales were flat, missing expectations of a 0.2% rise for the euro zone’s third largest economy.

In company news, Micro Focus led the Stoxx 600 lower with losses of 8% as the British software company admitted that it was disappointed with revenues at the Hewlett Packard Enterprise business that it is buying.

On the upside, Umicore (BR:UMI) led advancers with gains of 5% after a regulatory filing showed that Blackrock (NYSE:BLK) had increased its stake in the Belgian materials technology company to above 5% threshold for notification.

Meanwhile, oil prices were higher in European trading on Tuesday, extending a rebound off last week's four-month lows on the likelihood key producers could extend output cuts beyond an agreed-on June deadline.

Energy stocks traded higher, as French oil and gas major Total SA (PA:TOTF) gained 0.55%, Italy’s ENI (MI:ENI) rose 1.23%, while Norwegian rival Statoil (OL:STL) traded up 0.34%.

Financial stocks traded broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) advanced 1.36% and 0.42%, respectively, while Germany’s Commerzbank (DE:CBKG) and rival Deutsche Bank (DE:DBKGn) gained 2.56% and 0.86%, respectively.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) rose 1.40% and Unicredit (MI:CRDI) traded up 1.75%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 0.18% and 0.38%, respectively.

In London, the commodity-heavy FTSE 100 gained 0.37%.

Shares in Glencore (LON:GLEN) jumped 2.58%, Anglo American (LON:AAL) gained 2.23%, while BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) traded up 2.22% and 1.28%, respectively.

Energy stocks recorded gains, as BP (LON:BP) rose 0.31% and rival Royal Dutch Shell (LON:RDSa) traded up 1.00%.

Financial stocks were mostly higher, with shares in HSBC Holdings (LON:HSBA) up 0.70%, , Lloyds Banking (LON:LLOY) advanced 0.20% and Barclays (LON:BARC) gained 0.90%. Breaking the general trend the Royal Bank of Scotland (LON:RBS) slipped 0.07%

In the U.S., futures pointed to a flat to higher open. The Dow Jones Industrial Average futures advanced 0.09%, S&P 500 futures inched up 0.03%, while the Nasdaq 100 futures edged forward 0.03%.

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