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European stocks edge higher, debt concerns linger; Dax up 0.27%

Published 11/01/2012, 05:00 AM
Updated 11/01/2012, 05:01 AM
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Investing.com - European stocks edged higher on Thursday, but sentiment remained under pressure amid sustained concerns over the handling of Spain and Greece's debt woes.

During European morning trade, the EURO STOXX 50 inched up 0.09%, France’s CAC 40 added 0.09%, while Germany’s DAX 30 rose 0.27%.

Investors remained cautious amid uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.

Sentiment found some support however after official data showed that China’s manufacturing purchasing managers’ index came in at 50.2 in October, up from 49.8 in September, just slightly below forecasts for a reading of 50.3.

A separate report showed that the final reading of China’s HSBC PMI came in at 49.5 in September, an eight month high.

Financial stocks were mixed, as France saw shares in BNP Paribas rise 0.46% and Societe Generale drop 0.33%, while Germany's Deutsche Bank added 0.20%.

Oil stocks traded lower on the other hand, as Spanish group Repsol tumbled 1.75% and Italy's ENI SpA dropped 1.07%, while another commodity-linked stock, French steel manufacturer ArcelorMittal, lost 1.36%.

In London, FTSE 100 rose 0.30%, boosted by sharp gains in financial stocks.

Shares in Barclays advanced 0.78% and HSBC Holdings jumped 0.87%, while the Royal Bank of Scotland and Lloyds Banking rallied 2.03% and 3.08% respectively.

Mining giants BHP Billiton and Rio Tinto added to gains, with shares rising 0.03% and 0.43%, while copper producers Xstrata and Kazakhmys climbed 0.46% and 1.06%.

Also on the upside, British Sk Broadcasting saw shares surge 3.42% after saying that first quarter earnings were up 16%, as price rises and the sale of additional products to subscribers helped mask an otherwise steady performance in signing up new customers.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.13% fall, S&P 500 futures signaled a 0.22% loss, while the Nasdaq 100 futures indicated a 0.07% dip.

Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims. In addition, the Institute of Supply Management was to publish data on U.S. manufacturing activity.


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