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European stocks turn higher despite weak ZEW data; Dax up 0.62%

Published 03/18/2014, 08:15 AM
European stocks erase earlier losses
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Investing.com - European stocks turned higher on Tuesday, despite the release of weak of German economic sentiment data and as investors eyed a highly anticipated speech by Russian President Vladimir Putin.

During European afternoon trade, the EURO STOXX 50 climbed 0.84%, France’s CAC 40 jumped 0.90%, while Germany’s DAX 30 gained 0.62%.

The ZEW Centre for Economic Research reported that its index of German economic sentiment fell to 46.6 this month from February’s reading of 55.7. Analysts had expected the index to decline to 53.0.

The report indicated that the economic upswing in Germany is not at risk. The assessment of current economic conditions improved to 51.3 this month from 50.0 in February.

Economic expectations for the euro area also deteriorated this month, the ZEW Centre said, dropping to 61.5 from 68.5 in February, compared to expectations for a decline to 67.3.

Meanwhile, Vladimir Putin was set to address Russia's parliament later on Tuesday on making Crimea part of the Russian Federation, one day after signing a decree recognizing the region as a sovereign state.

Financial stocks turned mixed, as BNP Paribas gained 0.58% and Societe Generale eased 0.09% in France, while Germany's Deutsche Bank slid 0.32%.

Among peripheral lenders, Unicredit dropped 0.50% and Intesa Sanpaolo rallied 1.52% in Italy, while Spanish banks Banco Santander and BBVA lost 0.15% and 0.40% respectively.

Elswehere, Bloomberg reported that European car sales rose 7.6% in February, posting the sixth consecutive monthly gain. French carmaker Renault SA saw shares surge 2.16% following the news, while German rival Volkswagen AG were down 0.01%.

In London, FTSE 100 rose 0.31%.

Resolution led losses on the index, down 6.04%, even as the life insurer reported a 59% jump in pretax operating profit last year, heralded the completion of its restructuring and signed a fund management deal with Schroders.

Adding to losses, Vodafone declined 0.69%, one day after the wireless carrier agreed to buy Spanish cable operator Grupo Corporativo Ono SA for €7.2 billion, including debt, to boost TV and broadband offerings.

Meanwhile, mining stocks remained mostly lower. BHP Billiton fell 0.25% and Rio Tinto slipped 0.19%, while Fresnillo plunged 4.46%. Glencore Xstrata overperformed however, up 0.63%.

In the financial sector, stocks were also broadly lower as Lloyds Banking edged down 0.18% and HSBC Holdings fell 0.14%, while the Royal Bank of Scotland tumbled 0.98%. Barclays was trading higher on the other hand, with shares jumping 1.30%.

Sainsbury erased earlier losses, climbing 0.83%, after the U.K. grocer reported the first drop in same-store sales in more than nine years.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.42% climb, S&P 500 futures signaled a 0.40% increase, while the Nasdaq 100 futures indicated a 0.36% gain.

Later in the day, the U.S. was to produce data on consumer inflation, in addition to reports on building permits and housing starts.

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