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European stocks mixed as markets eye U.S. data; DAX up 0.60%

Published 01/03/2012, 07:42 AM
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Investing.com - European stock markets were mixed on Tuesday, as investors eyed a report on U.S. manufacturing activity amid ongoing concerns over the euro zone’s debt crisis.

During European morning trade, the EURO STOXX 50 fell 0.41%, France’s CAC 40 retreated 0.74%, while Germany’s DAX 30 surged 0.62%.

Market sentiment found support after data showed that Chinese manufacturing activity returned to expansionary territory last month after contracting in November, easing concerns over a slowdown in the world’s second largest economy.

But investors remained cautious amid fears over the risk of sovereign debt downgrades across the euro zone, as investors looked ahead to bond auctions by Germany and France later in the week.

Financial stocks turned lower as shares in Germany’s Deutsche Bank eased 0.02%, while French lenders BNP Paribas and Societe Generale slid 0.39% and 0.86%.

Meanwhile, Dutch telecommunications company Royal KPN NV plunged 3.05% after the company said Chief Financial Officer Carla Smits-Nusteling will step down because she failed to agree with a new management structure.

On the upside, Sky Deutschland jumped 6.94%, posting its biggest increase since November, as the German pay-television operator was raised to “buy” at Royal Bank of Scotland Group Plc.

Adecco saw shares jump 3.05% after the company said it has agreed to buy VSN Inc., a provider of professional staffing services in Japan, for an enterprise value of EUR90 million.

In London, commodity-heavy FTSE 100 jumped 0.97%, boosted by strong gains in energy and mining stocks.

Afren Plc soared 11.14%, the stock’s highest in seven weeks, as the U.K. oil and gas explorer said its aggregate production has reached 55,400 barrels of oil equivalent per day, exceeding its year-end target of 50,000 barrels.

British Petroleum was up 0.26% while seeking to have Halliburton Co. pay all of its related costs and damages for the company’s role as cement contractor on the Macondo well project whose blowout caused the 2010 Gulf of Mexico oil spill.

Financial stocks extended earlier gains as shares in Barclays jumped 3.72% and Lloyds Banking soared 2.57%, while HSBC Holdings and the Royal Bank of Scotland added 1.69% and 2.23%.

Elsewhere, Marks & Spencer rose 1.70% after the U.K.’s largest clothing retailer was raised to “neutral” from “underperform” by Bank of America.

In the U.S., equity markets pointed to a sharply higher open. The Dow Jones Industrial Average futures pointed to a surge of 1.50%, S&P 500 futures signaled a 1.47% jump, while the Nasdaq 100 futures indicated a 1.65% advance.

Also Tuesday, official data showed that the number of unemployed people in Germany fell more-than-expected in December, while the country’s jobless rate dropped to a record low.

Later in the day, the U.S. Institute of Supply Management was to publish a report on manufacturing activity and the Federal Reserve was to publish the minutes of its December policy meeting.


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