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European stocks mixed to higher after Spanish auction; Dax down 0.14%

Published 01/17/2013, 07:13 AM
Updated 01/17/2013, 07:15 AM
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Investing.com - European stocks were mixed to higher on Thursday, after a successful Spanish debt auction, although remained cautious amid ongoing concerns over U.S. debt ceiling negotiations.

During European morning trade, the EURO STOXX 50 added 0.22%, France’s CAC 40 advanced 0.74%, while Germany’s DAX 30 slipped 0.14%.

Spain’s Treasury sold EUR4.5 billion worth of debt, in line with the full targeted amount, while borrowing costs came down.

The yield on five-year bonds fell to 3.77%, down from 3.99% at a similar auction last week, while the yield on two-year bonds declined to 2.71%, compared to 3.35% at a similar auction last month.

Meanwhile, uncertainty over the U.S. debt ceiling deadlock continued to weigh after President Barack Obama urged Republicans earlier in the week to approve an increase in the borrowing limit without seeking policy concessions in return.

Market sentiment was also hit after the World Bank cut on Tuesday its forecast for global growth to 2.4% this year from 3% in June and warned that developing nations would struggle in 2013.

Financial stocks were mixed, as shares in French lenders Societe Generale and BNP Paribas rose 0.15% and 2.44%, while Germany's Deutsche Bank and Commerzbank slid 0.33% and 0.44% respectively.

Elsewhere, French retailer Carrefour surged 7.61%, extending earlier gains, after reporting a 0.8% increase in fourth-quarter sales, thanks to growth in Latin America, and saying business continued to improve in France.

On the downside, ASML tumbled 3.43% after the Dutch company said it expects full-year net sales at a similar level to 2012, which compares with estimates for a 10% increase. The group also said it sees a slow start for the first-quarter this year.

In London, commodity-heavy FTSE 100 eased up 0.04%, supported by gains in financial stocks.

Shares in Lloyds Banking climbed 0.43% and HSBC Holdings advanced 0.48%, while the Royal Bank of Scotland and Barclays rallied 1.11% and 1.16%.

Also on the upside, Associated British Foods surged 6.88% after saying first-quarter revenue increased 10%.

Meanwhile, mining giants BHP Billiton and Rio Tinto continued to trend lower, plummeting 1.05% and 1.69%, as did copper producer Xstrata, down 1.75%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.04% gain, S&P 500 futures signaled a 0.17% rise, while the Nasdaq 100 futures indicated a 0.20% increase.

Also Thursday, European Central Bank governing council member Ewald Nowotny said that the situation in the euro zone had stabilized and indicated that the bank was not concerned over the euro’s recent gains.

Later in the day, the U.S. was to produce official data on building permits and housing starts, in addition to the weekly government report on initial jobless claims and data on manufacturing activity in Philadelphia.


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