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European stocks steady after German data; Dax up 0.04%

Published 01/29/2013, 03:50 AM
Updated 01/29/2013, 03:51 AM
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Investing.com - European stocks were steady in choppy trade on Tuesday, after the release of positive German data, although investors remained cautious ahead of upcoming U.S. economic growth data.

During European morning trade, the EURO STOXX 50 dipped 0.04%, France’s CAC 40 was flat, while Germany’s DAX 30 inched up 0.04%.

Research group Gfk earlier said that its index of German consumer climate ticked up to 5.8 in January from a reading of 5.7 the previous month, beating expectations for the index to remain unchanged.

But overall market sentiment remained cautious ahead of a number of significant U.S. economic events later in the week, including data on fourth quarter growth and the Federal Reserve’s monetary policy statement on Wednesday, as well as Friday’s U.S. nonfarm payrolls data.

Financial stocks were broadly higher, as shares in French lenders Societe Generale and BNP Paribas rose 0.15% and 0.42%, while Germany's Deutsche Bank and Commerzbank added 0.14% and 0.60% respectively.

Elsewhere, Philips climbed 0.48% after the lighting manufacturer posted fourth-quarter profit that beat analysts' estimates, helped by demand for medical equipment and job cuts.

On the downside, Sandvik, the world’s biggest maker of metal-cutting tools, dropped 0.94% after reporting lower-than-expected fourth-quarter profit.

In London, commodity-heavy FTSE 100 added 0.18%, boosted by gains in mining stocks.

Mining giants BHP Billiton and Rio Tinto advanced 0.25% and 0.63%, while rival company Evraz surged 2.06%.

Copper producers Xstrata and Kazakhmys were also on the upside, with shares gaining 0.15% and 1.17% respectively.

Oil and gas major Anglo American jumped 1.18% after it said it will write down USD4 billion of the value of its Minas-Rio iron-ore project in Brazil and raise estimated spending a sixth time after expense blowouts forced CEO Cynthia Carroll to quit.

Financial stocks trended mostly lower on the other hand, as Barclays slipped 0.24% and Lloyds Banking retreated 0.75%, while the Royal Bank of Scotland tumbled 2.16%. HSBC Holdings overperformed however, rising 0.33%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.03% gain, S&P 500 futures signaled a 0.02% dip, while the Nasdaq 100 futures indicated a 0.08% fall.

Later in the day, the U.S. was to release reports on house price inflation and consumer confidence.


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