Investing.com - European stocks were higher during early European trade on Thursday, as market sentiment was boosted by an upbeat start to the U.S, earnings season.
Investors eyed a Spanish bond auction later in the session, amid ongoing concerns over rising borrowing costs for the debt-laden country.
During European morning trade, the EURO STOXX 50 rose 0.5%, France’s CAC 40 added 0.5%, while Germany’s DAX 30 advanced 0.6%.
U.S. equities had one of their best days in July on Wednesday, as a report showing U.S. housing starts hit their highest level since October 2008 last month eased concerns over the U.S. economic outlook.
Better-than-expected earnings from corporate bellwethers such as IBM and eBay released after U.S. market closed on Wednesday also boosted appetite for riskier assets.
Global tech giant IBM's earnings beat analyst forecasts, while eBay said second quarter profit more than doubled, sending its stock up nearly 6% in after-hours trading.
Meanwhile, investors mulled over a second day of testimony on the U.S. economy and monetary policy by Federal Reserve Chairman Ben Bernanke on Wednesday.
Bernanke reiterated that the U.S. central bank was prepared to take further action to support the economic recovery if necessary. However, he failed to indicate whether the Fed will embark on a third round of quantitative easing.
Shares in Spanish lenders were mostly flat, as Spain prepared to auction as much as EUR3 billion of three and seven year government bonds later in the day, in what was being seen as a key test of investor appetite for Madrid’s debt.
Ahead of the auction, the yield on Spanish 10-year bonds was at 6.97%, hovering close to the critical 7% threshold, widely viewed as unsustainable in the long run.
Shares in BBVA were 0.2% higher, while Banco Santander eased up 0.1%.
Shares in French lenders Societe Generale and Credit Agricole underperformed the sector, dropping 2.9% and 2.1% respectively after the Financial Times reported regulators are investigating the banks over the Libor manipulation scandal.
On the upside, shares in French industrial conglomerate Alstom jumped 3.4% after saying booked orders rose 20% in first fiscal quarter compared to the year-ago-period.
Meanwhile, shares in Nokia surged 5.8% ahead of the company’s closely-watched earnings report slated for later in the day.
Elsewhere, in London, the FTSE 100 eased up 0.2%, as investors awaited the release of U.K. data on retail sales later in the session.
Gains were limited as Kingfisher saw shares drop 2.3% after reporting a drop in same-store sales, citing the weather for poor demand for outdoor products.
In the U.S., equity markets pointed to a mildly higher open, as investors awaited earnings from Morgan Stanley, Google and Microsoft.
The Dow Jones Industrial Average futures pointed to a gain of 0.35%, S&P 500 futures signaled a rise of 0.3%, while the Nasdaq 100 futures indicated a 0.55% increase.
Later Thursday, the U.S. was to publish government data on initial jobless claims, as well as reports on existing home sales and manufacturing activity in Philadelphia.
Investors eyed a Spanish bond auction later in the session, amid ongoing concerns over rising borrowing costs for the debt-laden country.
During European morning trade, the EURO STOXX 50 rose 0.5%, France’s CAC 40 added 0.5%, while Germany’s DAX 30 advanced 0.6%.
U.S. equities had one of their best days in July on Wednesday, as a report showing U.S. housing starts hit their highest level since October 2008 last month eased concerns over the U.S. economic outlook.
Better-than-expected earnings from corporate bellwethers such as IBM and eBay released after U.S. market closed on Wednesday also boosted appetite for riskier assets.
Global tech giant IBM's earnings beat analyst forecasts, while eBay said second quarter profit more than doubled, sending its stock up nearly 6% in after-hours trading.
Meanwhile, investors mulled over a second day of testimony on the U.S. economy and monetary policy by Federal Reserve Chairman Ben Bernanke on Wednesday.
Bernanke reiterated that the U.S. central bank was prepared to take further action to support the economic recovery if necessary. However, he failed to indicate whether the Fed will embark on a third round of quantitative easing.
Shares in Spanish lenders were mostly flat, as Spain prepared to auction as much as EUR3 billion of three and seven year government bonds later in the day, in what was being seen as a key test of investor appetite for Madrid’s debt.
Ahead of the auction, the yield on Spanish 10-year bonds was at 6.97%, hovering close to the critical 7% threshold, widely viewed as unsustainable in the long run.
Shares in BBVA were 0.2% higher, while Banco Santander eased up 0.1%.
Shares in French lenders Societe Generale and Credit Agricole underperformed the sector, dropping 2.9% and 2.1% respectively after the Financial Times reported regulators are investigating the banks over the Libor manipulation scandal.
On the upside, shares in French industrial conglomerate Alstom jumped 3.4% after saying booked orders rose 20% in first fiscal quarter compared to the year-ago-period.
Meanwhile, shares in Nokia surged 5.8% ahead of the company’s closely-watched earnings report slated for later in the day.
Elsewhere, in London, the FTSE 100 eased up 0.2%, as investors awaited the release of U.K. data on retail sales later in the session.
Gains were limited as Kingfisher saw shares drop 2.3% after reporting a drop in same-store sales, citing the weather for poor demand for outdoor products.
In the U.S., equity markets pointed to a mildly higher open, as investors awaited earnings from Morgan Stanley, Google and Microsoft.
The Dow Jones Industrial Average futures pointed to a gain of 0.35%, S&P 500 futures signaled a rise of 0.3%, while the Nasdaq 100 futures indicated a 0.55% increase.
Later Thursday, the U.S. was to publish government data on initial jobless claims, as well as reports on existing home sales and manufacturing activity in Philadelphia.