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European stocks higher after strong German data; Dax up 0.56%

Published 07/24/2013, 03:46 AM
Updated 07/24/2013, 03:54 AM
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Investing.com - European stocks were higher on Wednesday, after the release of strong German manufacturing activity and service sector data, although a disappointing Chinese report fuelled fresh concerns over the outlook for growth in the world's second largest economy.

During European morning trade, the EURO STOXX 50 advanced 0.69%, France’s CAC 40 gained 0.67%, while Germany’s DAX 30 climbed 0.56%.

Markit research group said Germany's manufacturing purchasing managers' index rose to 50.3 in July, from a reading of 48.6 the previous month, beating expectations for a rise to 49.2 and re-entering expansion territory for the first time since February.

Markit said Germany's service sector PMI rose to 52.5 this month, from 50.4 in June, exceeding expectations for a rise to 50.8.

Earlier in the day, the preliminary reading of China’s HSBC manufacturing PMI fell to an 11-month low of 47.7 in July, from a final reading of 48.2 last month. Analysts had expected the index to rise to 48.6.

Financial stocks were mostly higher, as French lenders BNP Paribas and Societe Generale climbed 0.76% and 0.32%, while Germany's Deutsche Bank slipped 0.11%.

Bloomberg reported earlier that Deutsche Bank was preparing to consolidate two debt-trading groups in London, as it seeks to cut costs and riskier holdings.

Among peripheral lenders, Spanish banks BBVA and Banco Santander gained 0.72% and 0.97% respectively, while Italy's Intesa Sanpaolo and Unicredit jumped 1.23% and 1.27%.

In London, commodity-heavy FTSE 100 was up 0.66%, as U.K. lenders tracked their European counterparts higher.

Shares in Lloyds Banking added 0.33% and the Royal Bank of Scotland edged up 0.13%, while Barclays and HSBC Holdings climbed 0.36% and 0.95%.

Also on the upside, ARM Holdings, the chip designer whose products power Apple's iPhones and iPads, surged 1.95% after reporting second-quarter sales that beat estimates as phone and tablet makers demanded more advanced graphics and processing technology.

Meanwhile, mining stocks were mixed with Rio Tinto adding 0.31% and Vedanta Resources rallying 1.52%, while BHP Billiton and Anglo American slipped 0.03% and 0.26% respectively.

Elsewhere, British carmaker Daimler tumbled 0.91%, even as it forecast significant gains in second-half earnings as new models spur demand.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.23% gain, S&P 500 futures signaled a 0.25% rise, while the Nasdaq 100 futures indicated a 0.76% increase.

Later in the day, the euro zone was to release data on manufacturing and service sector activity, while the U.S. was to produce official data on new home sales.


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