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European stocks steady to higher, eyes on French election; DAX up 0.03%

Published 04/20/2017, 03:35 AM
© Reuters.  European stocks mostly higher ahead of first round of French presidential vote
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Investing.com - European stocks were steady to higher on Thursday, as investors continued to focus on the upcoming French presidential election, with the first round voting scheduled on Sunday April 23, and following a fresh round of corporate earnings reports.

During European morning trade, the EURO STOXX 50 rose 0.30%, France’s CAC 40 gained 0.60%, while Germany’s DAX 30 inched up 0.03%.

Recent polls in France showed that Centrist candidate Emmanuel Macron is still in the lead, although the outcome of Sunday’s vote is still too close to call.

Markets were also jittery amid ongoing geopolitical tensions after U.S. Secretary of State Rex Tillerson said on Wednesday that the U.S. was looking at ways to pressure North Korea over its nuclear program.

The comments came after North Korean state media warned the Americans of a "super-mighty preemptive strike" and said don't "mess with us."

Separately, Deputy Prime Minister Taro Aso, who heads Japan for a newly-created bilateral economic dialogue with the U.S., said on Wednesday that Japan has less room to compromise with Washington under a bilateral trade deal.

Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) jumped 1.02% and 1.29%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) climbed 0.44% and 0.51%.

Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) advanced 0.07% and 0.77% respectively, while Spanish banks BBVA (MC:BBVA) added 0.12%.

In earnigns news, Groupe Eurotunnel (PA:GETP) reported a 1$ increase in first-quarter revenues to €231.8 million, sending shares up 0.42%.

Pernod Ricard (PA:PERP) SA added to gains, with shares up 1.09% after the spirits maker said sales growth slowed slightly in the third quarter, but kept its profit outlook unchanged and achieved quarterly growth in the U.S. and in Europe.

In London, FTSE 100 eased up 0.09%, helped by Associated British Foods (LON:ABF), whose shares surged 2.29% after the company announced a rise in first-half profit to £652 million.

Unilever (LON:ULVR) was also on the upside, with shares rallying 1.45% after the consumer group said it is putting the $143 billion takeover bid from Kraft Heinz behind it and announced a rise in first-quarter revenues.

In the financial sector, stocks were also mostly higher. Barclays (LON:BARC) inched up 0.05% and HSBC Holdings (LON:HSBA) added 0.19%, while Lloyds Banking (LON:LLOY) jumped 1.30%. The Royal Bank of Scotland (LON:RBS) underperformed, with shares shedding 0.21%.

Meanwhile, mining stocks were mixed on the commodity-heavy index. Shares in Glencore (LON:GLEN) dipped 0.07% and Fresnillo (LON:FRES) lost 1.17%, while rivals Rio Tinto (LON:RIO) and Antofagasta (LON:ANTO) advanced 1.02% and 1.28% respectively.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.24% rise, S&P 500 futures showed a 0.24% gain, while the Nasdaq 100 futures indicated a 0.29% increase.

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