Investing.com - European stock markets were moderately higher on Tuesday, but market sentiment remained vulnerable as concerns over the results of Spain’s financial bailout and the outcome of upcoming elections in Greece weighed.
During European morning trade, the EURO STOXX 50 added 0.15%, France’s CAC 40 advanced 0.16%, while Germany’s DAX 30 rose 0.25%.
Investors were cautious as the exact amount Spain is to receive to recapitalize its banks will only be decided later this month, after the results of independent audits are published. In addition, questions remained over the source of the funds and whether the bailout repayments would add to the country’s already high borrowing costs.
Uncertainty over the outcome of a Greek general election on June 17, which could determine the course of the country’s future in the euro zone, also weighed.
Parties that support and oppose Greece's international bailout, and the harsh austerity measures accompanying it, remained neck-and-neck in the latest opinion polls.
Financial stocks were broadly lower, led by Italy’s Intesa Sanpaolo, down 1.26%, and Dutch lender ING Group, with shares declining 0.82%, while Germany’s Deutsche Bank and Commerzbank saw shares retreat 0.77% and 1.46% respectively.
Spanish lenders BBVA and Banco Santander dropped 0.62% and 0.72% after Fitch ratings agency downgraded the banks by two notches on Monday.
France’s two biggest lenders, BNP Paribas and Societe Generale, were on the upside however, adding 0.11% and 0.29%.
Meanwhile, Remy Cointreau gained 0.81%, as France’s second-biggest distiller said full-year operating profit excluding one-off items rose 24% to EUR208 million.
In London, FTSE 100 eased up 0.03%, after data showed that house price balance in the U.K. fell less-than-expected in May.
U.K. lenders tracked their European counterparts lower, as shares in Barclays plunged 2.23% and the Royal Bank of Scotland tumbled 1.81%, while Lloyds Banking dropped 1.04%. HSBC Holdings, on the other hand, saw shares rise 0.33%.
Mining giants Rio Tinto and Bhp Billiton also contributed to losses, with shares falling 0.04% and 0.16%, while copper producers Xstrata and Kazakhmys retreated 0.50% and 1.30% respectively.
On the upside, shares in telecom company Vodafone advanced 0.65%, after the U.K. Department of Economic Affairs said it had decided not to examine a possible breach of the 74% FDI cap by Vodafone and told the prime minister's office there is no need to relook at the FIPB approval given to the Hutch-Vodafone deal in 2007.
Elsewhere, British American Tobacco surged 1.54% after saying on Monday that it purchased 250,000 of its ordinary shares of 25 pence each, adding that it intends to hold these shares in Treasury.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to rise of 0.39%, S&P 500 futures signaled a 0.28% increase, while the Nasdaq 100 futures indicated a 0.35% gain.
Later in the day, the U.S. was to publish official data on import prices as well as a government report on federal budget balance.
During European morning trade, the EURO STOXX 50 added 0.15%, France’s CAC 40 advanced 0.16%, while Germany’s DAX 30 rose 0.25%.
Investors were cautious as the exact amount Spain is to receive to recapitalize its banks will only be decided later this month, after the results of independent audits are published. In addition, questions remained over the source of the funds and whether the bailout repayments would add to the country’s already high borrowing costs.
Uncertainty over the outcome of a Greek general election on June 17, which could determine the course of the country’s future in the euro zone, also weighed.
Parties that support and oppose Greece's international bailout, and the harsh austerity measures accompanying it, remained neck-and-neck in the latest opinion polls.
Financial stocks were broadly lower, led by Italy’s Intesa Sanpaolo, down 1.26%, and Dutch lender ING Group, with shares declining 0.82%, while Germany’s Deutsche Bank and Commerzbank saw shares retreat 0.77% and 1.46% respectively.
Spanish lenders BBVA and Banco Santander dropped 0.62% and 0.72% after Fitch ratings agency downgraded the banks by two notches on Monday.
France’s two biggest lenders, BNP Paribas and Societe Generale, were on the upside however, adding 0.11% and 0.29%.
Meanwhile, Remy Cointreau gained 0.81%, as France’s second-biggest distiller said full-year operating profit excluding one-off items rose 24% to EUR208 million.
In London, FTSE 100 eased up 0.03%, after data showed that house price balance in the U.K. fell less-than-expected in May.
U.K. lenders tracked their European counterparts lower, as shares in Barclays plunged 2.23% and the Royal Bank of Scotland tumbled 1.81%, while Lloyds Banking dropped 1.04%. HSBC Holdings, on the other hand, saw shares rise 0.33%.
Mining giants Rio Tinto and Bhp Billiton also contributed to losses, with shares falling 0.04% and 0.16%, while copper producers Xstrata and Kazakhmys retreated 0.50% and 1.30% respectively.
On the upside, shares in telecom company Vodafone advanced 0.65%, after the U.K. Department of Economic Affairs said it had decided not to examine a possible breach of the 74% FDI cap by Vodafone and told the prime minister's office there is no need to relook at the FIPB approval given to the Hutch-Vodafone deal in 2007.
Elsewhere, British American Tobacco surged 1.54% after saying on Monday that it purchased 250,000 of its ordinary shares of 25 pence each, adding that it intends to hold these shares in Treasury.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to rise of 0.39%, S&P 500 futures signaled a 0.28% increase, while the Nasdaq 100 futures indicated a 0.35% gain.
Later in the day, the U.S. was to publish official data on import prices as well as a government report on federal budget balance.