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European stocks rise on positive German data; Dax up 0.63%

Published 10/31/2012, 04:50 AM
Updated 10/31/2012, 04:51 AM
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Investing.com - European stocks were higher on Wednesday, following the release of positive German retail sales data, while U.S. markets prepared to reopen after Hurricane Sandy.

During European morning trade, the EURO STOXX 50 advanced 0.64%, France’s CAC 40 rose 0.58%, while Germany’s DAX 30 climbed 0.63%.

Official data earlier showed that German retail sales rose 1.5% in September, more than the expected 0.4% rise and following an increase of 0.1% the previous month.

Meanwhile, investors continued to await any sign that Spain is preparing to request a bailout, which would activate a bond purchasing program by the European Central Bank, aimed at lowering the borrowing costs of distressed euro zone states.

Separately, euro zone finance ministers were to hold a conference call later in the day to discuss Greece’s progress on meeting austerity targets, but no decision on when the country will receive the next tranche of its bailout was expected.

Financial stocks were mixed as France saw shares in BNP Paribas and Societe Generale drop 0.36% and 0.68%, while Germany's Deutsche Bank and Commerzbank advanced 0.69% and 0.73% respectively.

Meanwhile, shares in Nokia rallied 2.39% after saying on Tuesday that the Nokia Lumia 920 and the Nokia Lumia 820, the first devices in Nokia’s Windows Phone 8 range, are on their way to the U.K.

On the downside, ArcelorMittal plunged 3.28% after it said earnings before interest, taxes, depreciation and amortization dropped to USD1.34 billion from USD2.41 billion a year earlier.

In London, commodity-heavy FTSE 100 added 0.08%, supported by sharp gains in oil and mining stocks.

Oil and gas giant BP jumped 1.12% and rival Anglo American added 0.21%, while Tullow Oil and Petrofac climbed 1.99% and 1.45% respectively.

Mining giant BHP Billiton was also on the upside, with shares rising 0.15%, while Eurasian Natural Resources advanced 1% and steel manufacturer Evraz surged 2.42%.

In the financial sector, HSBC Holdings added 0.25% and the Royal Bank of Scotland rose 0.62%, while Lloyds Banking climbed 0.72%.

Barclays underperformed on the other hand, as shares plummeted 4.08% after the bank posted a net loss for the third quarter, as earnings were hit by provisions connected to the inappropriate selling of insurance to clients and charges on the firm’s own debt.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.41% rise, S&P 500 futures signaled a 0.64% gain, while the Nasdaq 100 futures indicated a 0.49% increase.

Later in the day, the euro zone was to release official data on the unemployment rate.

The U.S. was to produce official data on manufacturing activity in Chicago, as well as a government report on crude oil inventories.


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