Investing.com - European stocks opened higher on Tuesday, as tensions between the U.S. and North Korea continued to subside, lending support to riskier assets.
During European morning trade, the EURO STOXX 50 rose 0.34%, France’s CAC 40 climbed 0.50%, while Germany’s DAX 30 gained 0.39%.
Market sentiment improved after North Korea said on Tuesday it had delayed a decision on a plan to fire missiles at the U.S. Pacific territory of Guam while it watches U.S. actions a little longer.
At the same time, South Korean President Moon Jae-in said there will be no military action upon the Korean peninsula without Seoul's consent and that the government would prevent war by all means.
Markets shrugged off an earlier report showing that Germany’s gross domestic product rose 0.6% in the second quarter, disappointing expectations for an increase of 0.7%. Year-over-year, Germany’s economy grew 0.8% in the last quarter, less than the expected growth rate of 1.9%.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) gained 0.49% and 0.84%, while Germany’s Commerzbank (DE:CBKG) rose 0.26%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) advanced 0.63% and 1.65% respectively, while Spanish bank BBVA (MC:BBVA) added 0.22%.
RWE AG (DE:RWEG) added to gains, with shares up 1.16% after the German energy group reported higher-than-expected activity at is gas-fired power plants in the first half, helping it forecast full-year profits at the upper end of its outlook range.
Elsewhere, Volkswagen (DE:VOWG_p) shares rallied 0.97% following reports the German carmaker plans to bring its electric Crozz EV concept to the U.S. market, as soon it enters production.
The first vehicle to be built and released on the Volkswagen MEB modular electric platform will be the I.D. and it is slated for a release in 2020.
Danone SA (PA:DANO) added to gains, as shares surged 2.59% following reports Corvex Management now owns a stake of about $400 million in the company and as rumors surfaced of a possible takeover.
In London, FTSE 100 edged up 0.18%, helped by Shire PLC (LON:SHP), whose shares rallied 1.17% after the pharmaceutical company said it making progress in securing marketing approval in Europe for Lifitegrast, a drug for dry eye disease.
Financial stocks were also mostly higher, as HSBC Holdings (LON:HSBA) rose 0.24% and Lloyds Banking (LON:LLOY) gained 0.40%, while the Royal Bank of Scotland (LON:RBS) climbed 0.50%. Barclays (LON:BARC) underperformed however, with shares edging down 0.10%.
Meanwhile, mining stocks were broadly lower on the commodity-heavy index. Shares in Glencore (LON:GLEN) slid 0.36% and Rio Tinto (LON:RIO) lost 1.27%, while rivals Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) tumbled 1.28% and 1.47% respectively.
Retail giant Next PLC (LON:NXT) was one of the worst performers on the index, with shares down 3.39% after analysts at Shore Capital reaffirmed their hold rating on the stock.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.28% rise, S&P 500 futures signaled a 0.20% gain, while the Nasdaq 100 futures indicated a 0.32% increase.