Investing.com - European stock markets turned higher on Wednesday, as sentiment slightly improved after a successful Italian bond auction but investors remained cautious ahead of a ten-year bond sale scheduled on Thursday.
During European afternoon trade, the EURO STOXX 50 advanced 0.2%, France’s CAC 40 climbed 0.35%, while Germany’s DAX 30 rose 0.1%.
With most investors already away on year-end leave, trading volumes were thin, resulting in tight liquidity conditions and irregular volatility.
Market sentiment found support after a stronger-than-expected auction of Italian government debt earlier in the day.
Italy’s Treasury sold EUR9 billion of six-month bills, at an average yield of 3.25%, down from a record-high 6.50% in a previous auction in November. The country also sold EUR1.73 of two-year zero-coupons at a 5% yield.
Following the auction, the yield on Italy’s 10-year bonds traded at 6.82%, falling slightly below the 7% threshold widely seen as unsustainable in the long-term.
Despite the upbeat results, Thursday’s sale of EUR8.5 billion of long-term Italian debt maturing between 2014 and 2022 was seen as a bigger test of market confidence in the country’s sovereign debt.
Financial stocks were mixed as shares in Germany’s Deutsche Bank declined 1.77% and Dutch lender ING Group fell 1.06%, while France’s BNP Paribas advanced 0.40%.
The French lender announced earlier its plans to form a joint venture with OAO Sberbank to offer consumer credit in Russia.
Meanwhile, peripheral lenders turned higher, led by Italian bank Intesa Sanpaolo, surging 1.64%, while Spain’s BBVA and Banco Santander climbed 0.15% and 0.48% respectively.
Elsewhere, French group Carrefour rose 0.12%, erasing earlier losses, on news the company is about to sell and lease back 97 supermarket sites in France.
In London, commodity-heavy FTSE 100 added 0.63%. Global grocery company Tesco was one of the top gainers, with shares soaring 2.46%.
Meanwhile, mining giant Rio Tinto eased 0.32% and Bhp Billiton gained 0.07%, while copper producer Xstrata declined 0.84%.
Financial stocks were also mixed as shares in Barclays tumbled 1.45% and the Royal Bank of Scotland plunged 1.41%, while HSBC Holdings added 0.88%.
In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.20%, S&P 500 futures signaled a 0.25% increase, while the Nasdaq 100 futures indicated a 0.26% gain.
During European afternoon trade, the EURO STOXX 50 advanced 0.2%, France’s CAC 40 climbed 0.35%, while Germany’s DAX 30 rose 0.1%.
With most investors already away on year-end leave, trading volumes were thin, resulting in tight liquidity conditions and irregular volatility.
Market sentiment found support after a stronger-than-expected auction of Italian government debt earlier in the day.
Italy’s Treasury sold EUR9 billion of six-month bills, at an average yield of 3.25%, down from a record-high 6.50% in a previous auction in November. The country also sold EUR1.73 of two-year zero-coupons at a 5% yield.
Following the auction, the yield on Italy’s 10-year bonds traded at 6.82%, falling slightly below the 7% threshold widely seen as unsustainable in the long-term.
Despite the upbeat results, Thursday’s sale of EUR8.5 billion of long-term Italian debt maturing between 2014 and 2022 was seen as a bigger test of market confidence in the country’s sovereign debt.
Financial stocks were mixed as shares in Germany’s Deutsche Bank declined 1.77% and Dutch lender ING Group fell 1.06%, while France’s BNP Paribas advanced 0.40%.
The French lender announced earlier its plans to form a joint venture with OAO Sberbank to offer consumer credit in Russia.
Meanwhile, peripheral lenders turned higher, led by Italian bank Intesa Sanpaolo, surging 1.64%, while Spain’s BBVA and Banco Santander climbed 0.15% and 0.48% respectively.
Elsewhere, French group Carrefour rose 0.12%, erasing earlier losses, on news the company is about to sell and lease back 97 supermarket sites in France.
In London, commodity-heavy FTSE 100 added 0.63%. Global grocery company Tesco was one of the top gainers, with shares soaring 2.46%.
Meanwhile, mining giant Rio Tinto eased 0.32% and Bhp Billiton gained 0.07%, while copper producer Xstrata declined 0.84%.
Financial stocks were also mixed as shares in Barclays tumbled 1.45% and the Royal Bank of Scotland plunged 1.41%, while HSBC Holdings added 0.88%.
In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.20%, S&P 500 futures signaled a 0.25% increase, while the Nasdaq 100 futures indicated a 0.26% gain.