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European stocks add to gains in choppy trade; DAX up 0.48%

Published 08/07/2012, 08:09 AM
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Investing.com - European stocks added to gains in choppy trade on Tuesday, as markets continued to hope that Spain would request a full-scale bailout, allowing the European Central Bank to start buying Spanish government bonds.

During European afternoon trade, the EURO STOXX 50 gained 1.11%, France’s CAC 40 rose 0.80%, while Germany’s DAX 30 was up 0.48%.

The financial sector remained in focus after shares of British bank Standard Chartered bank plunged 29.29% in London, following steep losses in Asia after the New York State Department of Financial Services threatened to strip its state banking license, claiming it was a "rogue institution".

Officials from the DFS said Standard Chartered concealed GBP160 billion in transactions tied to Iran, in violation of U.S. sanctions.

In Germany, shares in the financial sector were lower, with shares of German lender Deutsche Bank down 0.16% and Commerzbank shares also losing 0.16%.
    
However, automakers were leading gains, with shares of Volkswagen up 1.09%, while BMW and Daimler rallied 1.11% and 1.02% respectively.

Meanwhile, shares of German energy provider RWE surged 1.48% after the company said that it has increased its Polish wind energy portfolio on Monday.

In France, shares of insurer Axa were up 1.38%, while lenders BNP Paribas and Societe Generale were up 0.35% and 1.37% respectively.

In London, the FTSE 100 dipped 0.03%, led lower by declines the financial sector.

Shares of lenders Barclays and Royal Bank of Scotland lost 0.80% and 1.44% respectively.

Gains in the commodity sector supported the FTSE, with shares of Anglo American surging 2.76%, Xstrata jumping 2.32% and BP Plc gaining 2.14%.

Also Tuesday, shares in pharmaceutical company Elan tumbled 12.79% on the Irish Stock Exchange after a partnership with Johnson & Johnson and Pfizer to develop an Alzheimer’s drug ended following a second failure in a clinical trial.

In the U.S., equity markets pointed to a modestly higher open. The Dow Jones Industrial Average futures pointed to a 0.16% rise, S&P 500 futures signaled a 0.33% gain, while the Nasdaq 100 futures indicated a 0.55% increase.

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