Investing.com - European stock markets were mildly higher after the open on Wednesday, as the previous day’s steep declines created bargain buying opportunities for investors, though worries about a “hard landing” in China remained.
During European morning trade, the EURO STOXX 50 rose 0.25%, France’s CAC 40 gained 0.5%, while Germany’s DAX 30 added 0.3%.
Global equities came under heavy selling pressure on Tuesday, with losses fuelled by concerns over a deeper-than-expected slowdown in Chinese economic growth after mining giant BHP Billiton said that Chinese demand for iron ore was “flattening out."
The comments followed the recent downward revision in China's growth target and a larger-than-expected trade deficit.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
But equities rebounded on Wednesday, with shares in automakers recouping some of the previous day’s losses after Citigroup lifted the sector to ‘overweight’ from ‘neutral’.
In France, Renault and Peugeot shares jumped 2.1% and 1.4% respectively, while Daimler rose 1.1% in Frankfurt and BMW added 0.85%.
Lenders performed strongly, as markets blew a sigh of relief after the March 20 deadline for Greece to avoid a default passed.
German banks Deutsche Bank and Commerzbank rose 1.3% and 1.7% respectively, while French lenders BNP Paribas and Societe Generale gained 1.1% and 0.8%.
But Italian lenders underperformed, as investors were looking ahead to a vote of confidence in Italy later in the day, which would allow Prime Minister Mario Monti’s government to press ahead with legislation to reform the country’s labor market.
Unicredit shares dipped 0.25% and Intesa Sanpaolo declined 0.2%.
German retailers were weaker, with athletic apparel retailer Adidas dropping 1.8% after Morgan Stanley downgraded the stock and METRO shares tumbling 4% after HSBC cut the stock to ‘underweight’ from ‘neutral’.
Elsewhere, London’s commodity-heavy FTSE 100 eased up 0.25%, ahead of the U.K.’s annual budget statement later in the day. Banks were mixed, with Barclays gaining 0.4% but Lloyds Banking Group sown 0.8%.
Miners also put in a mixed performance, amid concerns over a slowdown in demand from China, which is the top consumer for many commodities. Mining giant BHP Billiton slumped 0.6%, while Rio Tinto added 0.35%.
On the upside, J Sainsbury shares jumped 3.1% after Britain's third-biggest supermarket group beat forecasts for fourth quarter sales growth as it won market share from rivals.
Vodafone Group climbed 1.4% after Goldman Sachs added the mobile-service firm to its conviction buy list.
In the U.S., equity markets pointed to a mildly higher open. The Dow Jones Industrial Average futures pointed to a gain of 0.25%, S&P 500 futures added 0.3%, while the Nasdaq 100 futures indicated an increase of 0.25%.
Later in the day, the U.S. was to release industry data on existing home sales.
During European morning trade, the EURO STOXX 50 rose 0.25%, France’s CAC 40 gained 0.5%, while Germany’s DAX 30 added 0.3%.
Global equities came under heavy selling pressure on Tuesday, with losses fuelled by concerns over a deeper-than-expected slowdown in Chinese economic growth after mining giant BHP Billiton said that Chinese demand for iron ore was “flattening out."
The comments followed the recent downward revision in China's growth target and a larger-than-expected trade deficit.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
But equities rebounded on Wednesday, with shares in automakers recouping some of the previous day’s losses after Citigroup lifted the sector to ‘overweight’ from ‘neutral’.
In France, Renault and Peugeot shares jumped 2.1% and 1.4% respectively, while Daimler rose 1.1% in Frankfurt and BMW added 0.85%.
Lenders performed strongly, as markets blew a sigh of relief after the March 20 deadline for Greece to avoid a default passed.
German banks Deutsche Bank and Commerzbank rose 1.3% and 1.7% respectively, while French lenders BNP Paribas and Societe Generale gained 1.1% and 0.8%.
But Italian lenders underperformed, as investors were looking ahead to a vote of confidence in Italy later in the day, which would allow Prime Minister Mario Monti’s government to press ahead with legislation to reform the country’s labor market.
Unicredit shares dipped 0.25% and Intesa Sanpaolo declined 0.2%.
German retailers were weaker, with athletic apparel retailer Adidas dropping 1.8% after Morgan Stanley downgraded the stock and METRO shares tumbling 4% after HSBC cut the stock to ‘underweight’ from ‘neutral’.
Elsewhere, London’s commodity-heavy FTSE 100 eased up 0.25%, ahead of the U.K.’s annual budget statement later in the day. Banks were mixed, with Barclays gaining 0.4% but Lloyds Banking Group sown 0.8%.
Miners also put in a mixed performance, amid concerns over a slowdown in demand from China, which is the top consumer for many commodities. Mining giant BHP Billiton slumped 0.6%, while Rio Tinto added 0.35%.
On the upside, J Sainsbury shares jumped 3.1% after Britain's third-biggest supermarket group beat forecasts for fourth quarter sales growth as it won market share from rivals.
Vodafone Group climbed 1.4% after Goldman Sachs added the mobile-service firm to its conviction buy list.
In the U.S., equity markets pointed to a mildly higher open. The Dow Jones Industrial Average futures pointed to a gain of 0.25%, S&P 500 futures added 0.3%, while the Nasdaq 100 futures indicated an increase of 0.25%.
Later in the day, the U.S. was to release industry data on existing home sales.