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European stocks hold steady as caution dominates; Dax up 0.07%

Published 12/10/2013, 07:18 AM
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Investing.com - European stocks held steady on Tuesday, as expectations for further monetary easing by the European Central Bank subsided after the bank held back from fresh rate cuts at last week’s policy meeting.

During European afternoon trade, the EURO STOXX 50 dipped 0.04%, France’s CAC 40 slipped 0.10%, while Germany’s DAX 30 edged up 0.07%.

Market sentiment remained supported after data on Friday showed that the U.S. economy added more jobs than expected in November, pushing the unemployment rate down to a five year low of 7.0%.

In addition, data earlier showed that Chinese retail sales rose by a stronger than expected 13.7% in November, while industrial production rose 10.0%, just shy of expectations. The data eased concerns over a slowdown in the world’s second largest economy.

Meanwhile, Germany and France were reportedly close to reaching a banking union deal, following a meeting of European Union officials in Berlin last Friday. According to French Finance Minister Pierre Moscovici, the deal would combine both German and broader EU demands.

Financial stocks turned broadly higher, as French lenders BNP Paribas and Societe Generale gained 1.03% and 0.14%, while Germany's Deutsche Bank climbed 0.41%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander advanced 0.48% and 0.79% respectively, while Italy's Unicredit and Intesa Sanpaolo added 0.14% and 0.15%.

Elsewhere, Nokia tumbled 0.93%, erasing earlier gains, amid reports it could pay at least EUR355 million to India’s tax authorities to enable the transfer of a factory in the country to Microsoft.

Dutch oil terminal operator Royal Vopak plummeted 3.01% after it announced that it will be difficult for the company to exceed its record financial year of 2012.

In London, FTSE 100 eased 0.06%, after data showed that manufacturing and industrial output in the U.K. rose in October, adding to signs that the economic recovery is deepening.

Mining stocks remained mostly lower, as Vedanta Resources lost 1.34%, while rivals Rio Tinto and BHP Billiton retreated 0.57% and 1.17%.

Earlier in the day, BHP Billiton said it inttends to limit annual spending to USD15 billion, due to weaker commodity prices.

In the financial sector, stocks were mostly higher. Lloyds Banking and Barclays rose 0.15% and 0.21% respectively, while the Royal Bank of Scotland rallied 1.28%. HSBC Holdings underperformed however, down 0.40%.

Adding to gains, Ashtead Group jumped 1.30% after the supplier of fork-lifts and diggers said it expects full-year profit to be at the upper end of analysts’ estimates.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.07% gain, S&P 500 futures signaled a 0.08% rise, while the Nasdaq 100 futures indicated a 0.11% increase.

Later in the day, ECB President Mario Draghi is to speak at an event in Rome.


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