Investing.com - European stock markets extended gains on Tuesday, as market sentiment improved amid new hopes of a solution to the debt crisis in the euro zone, but concerns continued to weigh after a Spanish bond auction.
During European morning trade, the EURO STOXX 50 rose 0.57%, France’s CAC 40 advanced 0.67%, while Germany’s DAX 30 climbed 0.64%.
Market sentiment strengthened after European Union economic affairs Chief Olli Rehn said that a proposal from the German government for a euro zone debt redemption fund was worth further scrutiny.
But market sentiment remained under pressure after Spain’s Treasury sold EUR2.98 billion in three and six-month bonds in an auction which saw yields rise to 5.2% for the six-month bills, from 3.3% at a similar auction in October.
In the U.S., ratings agency Fitch said that the failure of a congressional committee to agree on a package of measures to slash the country’s deficit was likely to lead to a revision of the U.S. rating outlook to “negative”, rather than a downgrade.
Zodiac Aerospace saw shares surge 4.11% after the French maker of aeronautical equipment forecast about 20% growth in sales on a like-for-like basis in its first quarter, as the company supplies parts to new aircraft programs at Boeing Co. and Airbus SAS.
Meanwhile, financial stocks were mixed. Danske Bank jumped 1.57% after Cevian Capital AB bought a stake in the Danish lender, and Italy’s Intesa Sanpaolo climbed 0.87%, while French lenders BNP Paribas and Societe Generale tumbled 3.29% and 1% respectively.
In London, commodity-heavy FTSE 100 rose 0.70%, boosted by strong gains in mining stocks.
Antofagasta and Xstrata led rallies in mining companies, as shares soared 2.28% and 2.70% respectively.
Mining giants Rio Tinto and Bhp Billiton also contributed to gains, with shares jumping 1.78% and 1.36%, while British Petroleum declined 0.15%.
The financial sector was broadly higher as shares in Anglo America surged 2.34% and HSBC Holdings jumped 1.60%, while Barclays and Lloyds Banking saw shares climb 0.68% and 0.49%.
On the downside, shares in Thomas Cook Group plummeted 66.02% as Europe’s second-largest tour operator said it held talks with banks on financing. The company agreed to relaxed loan conditions a month ago.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a rise of 0.25%, S&P 500 futures signaled a 0.48% gain, while the Nasdaq 100 futures indicated a 0.03% decline.
Later in the day, the U.S. was to release preliminary data on gross domestic product, and the U.S. Federal Reserve was to publish the minutes of its November policy meeting, later Tuesday.
During European morning trade, the EURO STOXX 50 rose 0.57%, France’s CAC 40 advanced 0.67%, while Germany’s DAX 30 climbed 0.64%.
Market sentiment strengthened after European Union economic affairs Chief Olli Rehn said that a proposal from the German government for a euro zone debt redemption fund was worth further scrutiny.
But market sentiment remained under pressure after Spain’s Treasury sold EUR2.98 billion in three and six-month bonds in an auction which saw yields rise to 5.2% for the six-month bills, from 3.3% at a similar auction in October.
In the U.S., ratings agency Fitch said that the failure of a congressional committee to agree on a package of measures to slash the country’s deficit was likely to lead to a revision of the U.S. rating outlook to “negative”, rather than a downgrade.
Zodiac Aerospace saw shares surge 4.11% after the French maker of aeronautical equipment forecast about 20% growth in sales on a like-for-like basis in its first quarter, as the company supplies parts to new aircraft programs at Boeing Co. and Airbus SAS.
Meanwhile, financial stocks were mixed. Danske Bank jumped 1.57% after Cevian Capital AB bought a stake in the Danish lender, and Italy’s Intesa Sanpaolo climbed 0.87%, while French lenders BNP Paribas and Societe Generale tumbled 3.29% and 1% respectively.
In London, commodity-heavy FTSE 100 rose 0.70%, boosted by strong gains in mining stocks.
Antofagasta and Xstrata led rallies in mining companies, as shares soared 2.28% and 2.70% respectively.
Mining giants Rio Tinto and Bhp Billiton also contributed to gains, with shares jumping 1.78% and 1.36%, while British Petroleum declined 0.15%.
The financial sector was broadly higher as shares in Anglo America surged 2.34% and HSBC Holdings jumped 1.60%, while Barclays and Lloyds Banking saw shares climb 0.68% and 0.49%.
On the downside, shares in Thomas Cook Group plummeted 66.02% as Europe’s second-largest tour operator said it held talks with banks on financing. The company agreed to relaxed loan conditions a month ago.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a rise of 0.25%, S&P 500 futures signaled a 0.48% gain, while the Nasdaq 100 futures indicated a 0.03% decline.
Later in the day, the U.S. was to release preliminary data on gross domestic product, and the U.S. Federal Reserve was to publish the minutes of its November policy meeting, later Tuesday.