Investing.com – European stocks traded mixed on Tuesday as poor results from HSBC weighed on sentiment in London but positive euro zone data supported equities on the Old Continent.
Nearing midday in Europe, the benchmark Euro Stoxx 50 gained 0.12%, France’s CAC 40 inched up 0.04%, and Germany’s DAX 30 traded up 0.37%.
Euro zone business activity rose in February at its fastest pace since 2011, according to Markit’s flash composite purchasing managers’ index (PMI).
Germany, the motor of the euro area economy, saw growth hit a three-year high on the back of strong manufacturing activity that spiked to a 37-month high.
France also reported good news as its composite PMI hit a 69-month high, buoyed by the services sector as manufacturing activity eased more than expected.
Despite the positive news from the euro zone’s second largest economy, French bonds came under renewed selling pressure over concern that far right and euro sceptic politician Marine Le Pen could win the upcoming elections in late April and early May.
The spread between the yield on 10-year French sovereign debt and the benchmark German bund jumped to its highest level since 2012.
On big moves in earnings, John Wood Group (LON:WG) sank nearly 11%, leading the Stoxx 600 lower, as the oilfield services provider reported a 62% drop in profit.
Second on the list of worst performers, HSBC (LON:HSBA) tumbled 6% as the bank saw its own pre-tax profit crash more than 60% on goodwill charges and weak core markets.
On the opposite end of the index, Rubis (PA:RUBF) gained more than 5% as the French distributor of petroleum and chemical products announced that it would acquire the leading distributors of fuel products in Haiti Dinasa and its subsidiary Sodigaz.
The second largest advancer was Groupe SEB (PA:SEBF) with gains of nearly 5% as the French maker of small appliances reported record profit for 2016.
Meanwhile, oil prices moved higher on Tuesday, climbing towards the strongest levels since early January amid ongoing signs of compliance with a global pact to cut production.
Energy stocks were trading higher, as French oil and gas major Total SA (PA:TOTF) gained 0.79%, Italy’s ENI (MI:ENI) advanced 1.68%, while Norwegian rival Statoil (OL:STL) rose 1.49%.
Financial stocks were mixed, as French lenders BNP Paribas (PA:BNPP) slipped 0.07% but Societe Generale (PA:SOGN) gained 0.89%, while Germany’s Deutsche Bank (DE:DBKGn) lost 0.32% and Commerzbank (DE:CBKG) gave up 0.13%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) advanced 0.28% but Unicredit (MI:CRDI) fell 0.24%, while Spanish banks BBVA (MC:BBVA) traded down 0.29% and Banco Santander (MC:SAN) retreated 0.33%.
In London, the commodity-heavy FTSE 100 traded down 0.30%.
Shares in Glencore (LON:GLEN) rose 0.21%, Anglo American (LON:AAL) slumped 1.32%, while BHP Billiton (LON:BLT) fell 0.46% and Rio Tinto (LON:RIO) gained 0.12%.
Energy stocks traded higher, as BP (LON:BP) traded up 1.52% and Royal Dutch Shell (LON:RDSa) gained 0.50%.
Financial stocks were lower as shares in HSBC Holdings (LON:HSBA) tumbled 6.33% and the Royal Bank of Scotland (LON:RBS) lost 0.12%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) fell 0.32% and 0.15%, respectively.
With Wall Street set to reopen its doors after Monday’s holiday, U.S. futures pointed to a higher open. The Dow Jones Industrial Average futures rose 0.15%, S&P 500 futures gained 0.12%, while the Nasdaq 100 futures advanced 0.23%.