Investing.com - European stocks were higher on Tuesday, as hopes that a U.S. budget deal could soon be found to avoid a sovereign default supported market sentiment.
During European morning trade, the EURO STOXX 50 rose 0.39%, France’s CAC 40 added 0.27%, while Germany’s DAX 30 climbed 0.50%.
U.S. Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale climbed 0.45% and 0.65%, while Germany's Deutsche Bank gained 0.47%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander rose 0.26% and 0.42% respectively, while Italy's Intesa Sanpaolo and Unicredit added 0.06% and 0.37%.
On the downside, Kuehne & Nagel International tumbled 1.78% after the world’s biggest sea-freight forwarder reported third-quarter profit that missed analysts’ estimates as cargo volume stagnated amid the company’s effort to maintain pricing.
In London, FTSE 100 advanced 0.64%, supported by sharp gains in financial stocks.
Shares in HSBC Holdings added 0.12% and Barclays gained 1.07%, while Lloyds Banking surged 3.40%. The Royal Bank of Scotland underperformed on the other hand, plummeted 2.78%.
Bloomberg reported earlier that Richard Usher, JPMorgan Chase's chief dealer in London, wrote instant messages while he was at Royal Bank of Scotland Group that U.K. regulators are scrutinizing as part of their investigation of alleged currency manipulation.
Mining stocks were also on the upside, as Glencore Xstrata jumped 1.14% and Rio Tinto climbed 2.43%, while rival company Evraz rallied 2.62%.
Elsewhere, Burberry Group was one of the worst performers on the index, plunging 4.79%, as Chief Executive Officer Angela Ahrendts is leaving the U.K. luxury-goods maker to head Apple's retail and online business. She will be replaced by Christopher Bailey.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.01% gain, S&P 500 futures signaled a 0.01% rise, while the Nasdaq 100 futures indicated a 0.09% increase.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the U.S. was to release a report on manufacturing activity in the Empire state.
During European morning trade, the EURO STOXX 50 rose 0.39%, France’s CAC 40 added 0.27%, while Germany’s DAX 30 climbed 0.50%.
U.S. Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale climbed 0.45% and 0.65%, while Germany's Deutsche Bank gained 0.47%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander rose 0.26% and 0.42% respectively, while Italy's Intesa Sanpaolo and Unicredit added 0.06% and 0.37%.
On the downside, Kuehne & Nagel International tumbled 1.78% after the world’s biggest sea-freight forwarder reported third-quarter profit that missed analysts’ estimates as cargo volume stagnated amid the company’s effort to maintain pricing.
In London, FTSE 100 advanced 0.64%, supported by sharp gains in financial stocks.
Shares in HSBC Holdings added 0.12% and Barclays gained 1.07%, while Lloyds Banking surged 3.40%. The Royal Bank of Scotland underperformed on the other hand, plummeted 2.78%.
Bloomberg reported earlier that Richard Usher, JPMorgan Chase's chief dealer in London, wrote instant messages while he was at Royal Bank of Scotland Group that U.K. regulators are scrutinizing as part of their investigation of alleged currency manipulation.
Mining stocks were also on the upside, as Glencore Xstrata jumped 1.14% and Rio Tinto climbed 2.43%, while rival company Evraz rallied 2.62%.
Elsewhere, Burberry Group was one of the worst performers on the index, plunging 4.79%, as Chief Executive Officer Angela Ahrendts is leaving the U.K. luxury-goods maker to head Apple's retail and online business. She will be replaced by Christopher Bailey.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.01% gain, S&P 500 futures signaled a 0.01% rise, while the Nasdaq 100 futures indicated a 0.09% increase.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the U.S. was to release a report on manufacturing activity in the Empire state.