Investing.com - European stock markets were mostly higher on Tuesday, despite concerns a partial shutdown of the U.S. government will create a drag on fourth quarter U.S. economic growth.
During European afternoon trade, the EURO STOXX 50 climbed 0.65%, France’s CAC 40 advanced 0.7%, while Germany’s DAX 30 gained 0.5%.
The U.S. government began a partial shutdown after lawmakers failed to reach an agreement on a new budget before Monday's midnight deadline. It is the first government shutdown in the U.S. since 1996.
Lawmakers are expected to continue negotiating a funding measure later in the day in hopes of reaching a compromise.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
Meanwhile, data released earlier in the day showed that the final reading of the euro zone manufacturing purchasing managers’ index was unchanged at 51.1 in September, in line with forecasts.
Separately, a government report showed that the number of unemployed people in Germany rose for the second consecutive month in September, while the country’s jobless rate rose to 6.9% from 6.8% in August.
Eurostat said the total euro zone unemployment rate was 12.0% last month, while August’s rate was revised down to 12% from 12.1%.
Investors were also 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.
Shares of Telecom Italia rallied 4.3% after Wall Street investment bank Goldman Sachs raised its rating on the stock to “buy”.
Renault rose 1.2% in Paris after data showed new French car registrations for the automaker increased 18% in September.
Elsewhere, in London, FTSE 100 dipped 0.25% after data showed that manufacturing activity slowed slightly in September.
Markit said that its U.K. manufacturing PMI fell to 56.7 in September from a downwardly revised 57.1 in August. Analysts had expected the index to tick up to 57.3.
Unilever was one of the worst performers on the index, down 3.6%, after the consumer-goods maker said sales growth slowed in the third quarter.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.3% gain, S&P 500 futures signaled a 0.35% climb, while the Nasdaq 100 futures indicated a 0.35% increase.
The Institute of Supply Management was to produce a report on U.S. manufacturing activity later in the trading day.
During European afternoon trade, the EURO STOXX 50 climbed 0.65%, France’s CAC 40 advanced 0.7%, while Germany’s DAX 30 gained 0.5%.
The U.S. government began a partial shutdown after lawmakers failed to reach an agreement on a new budget before Monday's midnight deadline. It is the first government shutdown in the U.S. since 1996.
Lawmakers are expected to continue negotiating a funding measure later in the day in hopes of reaching a compromise.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
Meanwhile, data released earlier in the day showed that the final reading of the euro zone manufacturing purchasing managers’ index was unchanged at 51.1 in September, in line with forecasts.
Separately, a government report showed that the number of unemployed people in Germany rose for the second consecutive month in September, while the country’s jobless rate rose to 6.9% from 6.8% in August.
Eurostat said the total euro zone unemployment rate was 12.0% last month, while August’s rate was revised down to 12% from 12.1%.
Investors were also 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.
Shares of Telecom Italia rallied 4.3% after Wall Street investment bank Goldman Sachs raised its rating on the stock to “buy”.
Renault rose 1.2% in Paris after data showed new French car registrations for the automaker increased 18% in September.
Elsewhere, in London, FTSE 100 dipped 0.25% after data showed that manufacturing activity slowed slightly in September.
Markit said that its U.K. manufacturing PMI fell to 56.7 in September from a downwardly revised 57.1 in August. Analysts had expected the index to tick up to 57.3.
Unilever was one of the worst performers on the index, down 3.6%, after the consumer-goods maker said sales growth slowed in the third quarter.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.3% gain, S&P 500 futures signaled a 0.35% climb, while the Nasdaq 100 futures indicated a 0.35% increase.
The Institute of Supply Management was to produce a report on U.S. manufacturing activity later in the trading day.