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European stocks higher on Spanish data; Dax up 0.82%

Published 06/04/2013, 03:42 AM
Updated 06/04/2013, 03:43 AM
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Investing.com - European stocks were higher on Tuesday, after positive Spanish jobless data, while downbeat U.S. data on Monday dampened expectations for the Federal Reserve to scale back its stimulus program in the near future.

During European morning trade, the EURO STOXX 50 advanced 0.72%, France’s CAC 40 rose 0.72%, while Germany’s DAX 30 gained 0.82%.

Official data showed that the number of unemployed people in Spain dropped by 98,300 in May, more than the expected 50,200 fall, after a 46,100 decline the previous month.

On Monday, data showed that activity in the U.S. manufacturing sector contracted for the first time in six months in May.

The Institute for Supply Management said its index of purchasing managers fell to 49.0, the lowest level since June 2009 and below the 50 level that separates contraction from growth.

Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale jumped 1.04% and 2.35%, while Germany's Deutsche Bank rallied 1.25%.

Peripheral lenders added to gains, with Spanish banks BBVA and Banco Santander climbing 0.70% and 1.09% respectively, while Italy's Unicredit and Intesa Sanpaolo advanced 1.40% and 1.41%.

Elsewhere, Royal Ahold jumped 0.96% after the Dutch owner of the Stop & Shop chain quadrupled a share buyback to EUR2 billion to redistribute excess cash following the sale of a stake in Swedish retailer ICA.

In London, FTSE 100 climbed 0.52%, as U.K. lenders tracked their European counterparts higher.

Shares in Lloyds Banking gained 0.60% and the Royal Bank of Scotland advanced 0.66%, while HSBC Holdings and Barclays rallied 1.20% and 1.30%.

Meanwhile, mining stocks were also higher, as Rio Tinto rose 0.58%, while Randgold Resources and Eurasian Natural Resources climbed 0.86% and 1.51% respectively.

Separately, Glencore Xstrata gained 0.82% after saying it fired about 1,000 workers who participated in an unauthorized strike at three South African chrome production sites.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.04% dip, S&P 500 futures signaled a 0.04% loss, while the Nasdaq 100 futures indicated a 0.06% gain.

Later in the day, the U.S. was to produce a report on the trade balance.


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