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Europe stocks rally on strong earnings reports; DAX up 0.57%

Published 07/27/2010, 04:47 AM
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Investing.com – European stocks were up on Tuesday, boosted by better than expected reports from Germany's Deutsche Bank and Swiss bank UBS, while U.S. futures also advanced.

During European morning trade, the EURO STOXX 50 advanced 0.96%; France’s CAC 40 rose 0.94% while Germany's DAX was up 0.57%.

Shares in Deutsche Bank rose 2.2% after it said net income increased 6.4% in the second quarter, as gains in retail and transaction banking helped offset a decline in sales and trading.

UBS, Switzerland’s biggest bank, surged 6.6% after reporting a third consecutive quarterly profit. The bank reported net income of CHF 2.01 billion, after a net loss of CHF 1.4 billion a year earlier.

In London, the FTSE 100 was up 0.73% as BP shares jumped 4.86% after the company announced it had appointed Bob Dudley to replace Tony Hayward, who is stepping down as chief executive on October 1 by "mutual agreement".

The oil giant reported a record USD 17.2 billion quarterly loss, having set aside USD 32 billion to cover the cost of the Gulf of Mexico oil spill.

However the company said also said its second-quarter operating cash flow, excluding the Gulf of Mexico costs rose 31% year-on-year to USD 8.9 billion.

The outlook for U.S. equity markets, meanwhile, was optimistic: Dow Jones Industrial Average futures indicated an increase of 0.21%, S&P 500 futures pointed to a gain of 0.25% and Nasdaq 100 futures indicated an advance of 0.35%.

Later in the day, the U.S. was to release data on consumer confidence and house prices.

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