Investing.com - European stocks were higher on Tuesday, as investors eyed a series of government bond auctions in Italy and Spain later in the day, but gains were limited by growing concerns over the outcome of this week’s highly anticipated European Union summit.
During European morning trade, the EURO STOXX 50 climbed 0.51%, France’s CAC 40 added 0.35%, while Germany’s DAX 30 rose 0.47%.
Markets were jittery ahead of the European Union summit due to begin on Thursday, amid skepticism that leaders would make progress on greater fiscal integration and allowing the bloc's rescue funds to buy government debt.
On Monday, German Chancellor Angela Merkel crushed any hopes that euro zone countries will eventually issue common Eurobonds to help indebted nations, calling such an idea “economically wrong” and “counterproductive”.
Meanwhile, Greece’s new finance minister was forced to resign, due to health issues, while Prime Minister Antonis Samaras said he would not be able to attend this week’s EU summit given that he had just undergone eye surgery.
Investors were also cautious after Moody’s ratings agency downgraded 28 Spanish banks late Monday, citing exposure to the ailing real estate market. The decision came after Spain formally requested up to EUR100 billion in rescue loans to recapitalize its struggling banks.
Financial stocks were broadly higher despite the news, led by Italian lender Unicredit, up 1.63%, and closely followed by Spain’s BBVA, whose shares jumped 1.09%.
French lenders Societe Generale and BNP Paribas added to gains, with shares rallying 1.37% and 1.19% respectively, while Germany’s Deutsche Bank and Commerzbank climbed 0.99% and 0.37%.
Meanwhile, Adecco, the world’s largest supplier of temporary workers, surged 2.52% after the Swiss company said its buyback program will start in mid-July and be funded through debt.
Auto stocks were on the downside however, as shares in BMW plunged 2.18% and Volkswagen tumbled 1.72%, while Daimler retreated 1.36%.
In London, commodity-heavy FTSE 100 rose 0.34%, boosted by gains in energy and mining stocks.
Mining giants Rio Tinto and Bhp Billiton saw shares rally 1.38% and 0.88%, while oil and gas majors Anglo American and BP climbed 1.38% and 0.89%.
Copper producer were also higher, with shares in Xstrata advancing 0.35% and Kazakhmys jumping 1.39%.
Elsewhere, Shire saw shares surge 2.38% after Societe Generale and Berenberg Bank upgraded their recommendations on the drug maker to buy from hold.
Financials stocks were mixed on the other hand. Shares in the Royal Bank of Scotland tumbled 1.14% and Lloyds Banking retreated 0.92%, while Barclays dropped 0.60% and HSBC Holdings added 0.64%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.38% rise, S&P 500 futures signaled a 0.43% increase, while the Nasdaq 100 futures indicated a 0.46% gain.
Also Tuesday, a report by Gfk showed that its index of consumer climate in Germany rose unexpectedly in June, ticking up to 5.8 from a reading of 5.7 the previous month. Analysts had expected the index to remain unchanged at 5.7.
Later in the day, the U.S. was to release industry data on house price inflation, followed by a report on consumer confidence.
During European morning trade, the EURO STOXX 50 climbed 0.51%, France’s CAC 40 added 0.35%, while Germany’s DAX 30 rose 0.47%.
Markets were jittery ahead of the European Union summit due to begin on Thursday, amid skepticism that leaders would make progress on greater fiscal integration and allowing the bloc's rescue funds to buy government debt.
On Monday, German Chancellor Angela Merkel crushed any hopes that euro zone countries will eventually issue common Eurobonds to help indebted nations, calling such an idea “economically wrong” and “counterproductive”.
Meanwhile, Greece’s new finance minister was forced to resign, due to health issues, while Prime Minister Antonis Samaras said he would not be able to attend this week’s EU summit given that he had just undergone eye surgery.
Investors were also cautious after Moody’s ratings agency downgraded 28 Spanish banks late Monday, citing exposure to the ailing real estate market. The decision came after Spain formally requested up to EUR100 billion in rescue loans to recapitalize its struggling banks.
Financial stocks were broadly higher despite the news, led by Italian lender Unicredit, up 1.63%, and closely followed by Spain’s BBVA, whose shares jumped 1.09%.
French lenders Societe Generale and BNP Paribas added to gains, with shares rallying 1.37% and 1.19% respectively, while Germany’s Deutsche Bank and Commerzbank climbed 0.99% and 0.37%.
Meanwhile, Adecco, the world’s largest supplier of temporary workers, surged 2.52% after the Swiss company said its buyback program will start in mid-July and be funded through debt.
Auto stocks were on the downside however, as shares in BMW plunged 2.18% and Volkswagen tumbled 1.72%, while Daimler retreated 1.36%.
In London, commodity-heavy FTSE 100 rose 0.34%, boosted by gains in energy and mining stocks.
Mining giants Rio Tinto and Bhp Billiton saw shares rally 1.38% and 0.88%, while oil and gas majors Anglo American and BP climbed 1.38% and 0.89%.
Copper producer were also higher, with shares in Xstrata advancing 0.35% and Kazakhmys jumping 1.39%.
Elsewhere, Shire saw shares surge 2.38% after Societe Generale and Berenberg Bank upgraded their recommendations on the drug maker to buy from hold.
Financials stocks were mixed on the other hand. Shares in the Royal Bank of Scotland tumbled 1.14% and Lloyds Banking retreated 0.92%, while Barclays dropped 0.60% and HSBC Holdings added 0.64%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.38% rise, S&P 500 futures signaled a 0.43% increase, while the Nasdaq 100 futures indicated a 0.46% gain.
Also Tuesday, a report by Gfk showed that its index of consumer climate in Germany rose unexpectedly in June, ticking up to 5.8 from a reading of 5.7 the previous month. Analysts had expected the index to remain unchanged at 5.7.
Later in the day, the U.S. was to release industry data on house price inflation, followed by a report on consumer confidence.