Breaking News
0

European stocks mixed, eyes on German ruling; DAX up 0.25%

Stock MarketsSep 12, 2012 03:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Investing.com - European stocks were mixed on Wednesday, as markets were jittery ahead of a highly anticipated German court ruling later in the day, while hopes for imminent easing measures by the Federal Reserve continued to support sentiment.

During European morning trade, the EURO STOXX 50 added 0.27%, France’s CAC 40 dipped 0.01%, while Germany’s DAX 30 rose 0.25%.

Investors were cautious, although Germany’s constitutional court was expected back the euro zone’s bailout fund, the European Stability Mechanism in a ruling later in the day.

Meanwhile, markets eyed the outcome of the Fed’s policy meeting on Thursday, after disappointing U.S. employment data last week fueled fresh expectations for the central bank to add stimulus.

On Tuesday, Moody’s said that it could downgrade the U.S’s triple-A rating if budget negotiations for 2013 do not result in policy measures which will reduce the country’s debt.

Financial stocks were mostly lower, as shares in Germany’s Deutsche Bank dropped 0.94%, while French lenders Societe Generale and BNP Paribas declined 0.36% and 0.10% respectively.

Deutsche Bank on Tuesday announced plans to cut costs by EUR4.5 billion to boost profitability in the face of higher capital requirements and the euro zone’s sovereign debt crisis.

Italian lender Unicredit outperformed its counterparts however, with shares surging 1.34%, as did Spain’s Banco Santander, climbing 0.73% after Morgan Stanley raised its recommendation for bank to “overweight” from “equalweight”.

Meanwhile, Iberdrola gained 1.10% after Chairman Galan said in an interview that the company will reduce debt by as much as 20% by cutting costs.

In London, commodity-heavy FTSE 100 fell 0.09%, weighed by losses in mining and oil stocks.

Mining giants Rio Tinto and BHP Billiton retreated 0.59% and 0.39%, while copper producers Xstrata and Kazakhmys lost 0.32% and 0.18% respectively.

Also on the downside, oil and gas major Anglo American slumped 2.47%, while BP saw shares drop 0.40%.

Financial stocks were mixed, as shares in the Royal Bank of Scotland rallied 1.28% and Barclays advanced 1.08%, while Lloyds Banking gained 1% and HSBC Holdings edged down 0.14%.

Elsewhere, Kingfisher jumped 1.07%, even as the home-improvement retailer said first-half earnings slumped as concern about the euro zone debt crisis and wet weather deterred spending.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.24% rise, S&P 500 futures signaled a 0.19% increase, while the Nasdaq 100 futures indicated a 0.19% gain.

Also Wednesday, Spain’s Prime Minister Mariano Rajoy indicated that the country is considering getting assistance from the ECB’s bond purchasing program, but outruled a full-blown sovereign bailout.

Later in the day, the U.S. was to release official data on import prices, followed by a government report on crude oil stockpiles.


European stocks mixed, eyes on German ruling; DAX up 0.25%
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email