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European stocks mixed to higher after U.S. shutdown; Dax up 0.45%

Published 10/01/2013, 03:41 AM
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Investing.com - European stocks were mixed to higher on Tuesday, after the U.S. Congress failed to reach an agreement on a budget for the next fiscal year, leading to a partial shutdown of the government.

During European morning trade, the EURO STOXX 50 climbed 0.58%, France’s CAC 40 advanced 0.44%, while Germany’s DAX 30 gained 0.45%.

Markets were jittery as the U.S. government began a partial shutdown after lawmakers failed to reach an agreement on a new budget. It is the first partial government shutdown in the U.S. for 17 years.

Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.

Meanwhile, investors were closely watching political developments in Italy, with Prime Minister Enrico Letta due before parliament for a vote of confidence on Wednesday after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.

Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale rallied 0.92% and 1%, while Germany's Deutsche Bank climbed 0.54%.

Among peripheral lenders, Spanish banks Banco Santander and BBVA advanced 0.70% and 0.85% respectively, while Italy's Unicredit and Intesa Sanpaolo gained 0.81% and 1.64%.

In London, commodity-heavy FTSE 100 eased 0.04%, weighed by losses in the mining sector.

Shares in Glencore Xstrata slid 0.34% and Polymetal lost 0.46%, while rival company Evraz tumbled 2.11%.

Unilever was one of the worst performers on the index, down 3.27%, after the consumer-goods maker said sales growth slowed in the third quarter.

Meanwhile, U.K. lenders tracked their European counterparts higher, as HSBC Holdings added 0.24% and Barclays gained 0.60%, while the Royal Bank of Scotland climbed 0.61%. Lloyds Banking underperformed however, shedding 0.23%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.31% gain, S&P 500 futures signaled a 0.41% climb, while the Nasdaq 100 futures indicated a 0.50% increase.


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