Investing.com - European stocks were mostly higher on Tuesday, as comments by a Federal Reserve official lowered expectations for a near-term U.S. rate hike, while investors eyed the release of euro zone economic sentiment data and a speech by European Central Bank President Mario Draghi.
During European morning trade, the EURO STOXX 50 added 0.13%, France’s CAC 40 inched 0.08% higher, while Germany’s DAX 30 edged up 0.12%.
European equities strengthened after Fed Governor Lael Brainard warned against raising interest rates too quickly.
In a speech on Monday, Brainard says economic progress continues in the U.S., but the Fed would be wise to continue keeping policy loose.
Separately, market sentiment improved after data earlier showed that China’s industrial production increased by 6.3% in August, year-on-year, beating expectations for a 6.1% gain and after a 6.0% rise the previous month.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) gained 0.75% and 0.93%, while Germany’s Deutsche Bank (DE:DBKGn) advanced 0.60%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) climbed 0.59%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) rose 0.47% and 0.51% respectively.
On the downside, RWE AG (DE:RWEG) saw shares tumble 0.99% after analysts at DZ Bank reiterated their “sell” rating on the stock.
French oil and gas major Total SA (PA:TOTF) added to losses, with shares retreating 0.94% amid declining oil prices and after announcing on Friday that it is exercising its preemption right to acquire the 75% interest owned by Chesapeake Energy (NYSE:CHK) in the jointly held Barnett operation.
In London, FTSE 100 dipped 0.07%, weighed by Associated British Foods (LON:ABF) for a second consecutive session. The company’s shares were down 3.41% after warning that Primark was about to register its first ever like-for-like sales drop and that its pensions scheme swung into a £200 million deficit.
Mining stocks were also broadly lower on the commodity-heavy index. Shares in Glencore (LON:GLEN) dropped 0.51% and BHP Billiton (LON:BLT) lost 1.21%, while Anglo American (LON:AAL) plummeted 2.16%.
In the financial sector, stocks were mixed as Lloyds Banking (LON:LLOY) slipped 0.11% and HSBC Holdings (LON:HSBA) declined 0.78%, while Barclays (LON:BARC) rose 0.27% and the Royal Bank of Scotland (LON:RBS) climbed 0.55%.
Meanwhile, Shire Plc (LON:SHP) was one of the top performers on the index, with shares rallying 1.71% after analysts at Jefferies Group reaffirmed their “buy” rating on the stock.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.66% drop, S&P 500 futures showed a 0.66% loss, while the Nasdaq 100 futures indicated a 0.63% decline.