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European stocks open moderately higher, financials lead; DAX up 0.12%

Published 08/09/2016, 03:39 AM
© Reuters.  Frankfurt Stock Exchange
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Investing.com - European stocks opened moderately higher on Tuesday, as Friday’s upbeat U.S. jobs data continued to support market sentiment, although lower oil prices were expected to limit gains.

During European morning trade, the EURO STOXX 50 added 0.12%, France’s CAC 40 gained 0.11%, while Germany’s DAX 30 edged up 0.12%.

Optimism over the strength of the U.S. economy was boosted after the Labor Department said on Friday that the U.S. economy added 255,000 jobs last month, well above expectations for 180,000.

However, oil prices moved back lower on Tuesday, as global supply glut concerns overshadowed rumors of a potential agreement among exporters to freeze output.

Energy stocks weakened mildly, as French oil and gas major Total SA (PA:TOTF) slipped 0.10% and Italy’s ENI (MI:ENI) edged down 0.15%, while Norwegian rival Statoil (OL:STL) fell 0.22%.

In the financial sector, stocks were mostly higher as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rose 0.32% and 0.72%, while Germany’s Deutsche Bank (DE:DBKGn) added 0.28%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) advanced 0.71% and 2.19% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) climbed 0.37% and 0.57%.

Elsewhere, Randstad (AS:RAND) plummeted 1.98% after the Dutch recruitment firm announced plans to buy U.S. rival Monster for $429 million.

In London, FTSE 100 edged up 0.13%, boosted by Smiths Group (LON:SMIN), whose shares surged 2.40% after the technology company said revenue for the year ended July 31 is expected to be above both expectations and the previous year.

Standard Life (LON:SL) was also one of the top performers on the index, with shares up 2.42% after the insurer posted a 7% increase in first-half assets, exceeding analysts’ expectations.

Meanwhile, financial stocks were mixed. Shares in Lloyds Banking (LON:LLOY) and Barclays (LON:BARC) slid 0.36% and 0.52% respectively, while the Royal Bank of Scotland (LON:RBS) inched 0.03% higher and HSBC Holdings (LON:HSBA) eased up 0.09%.

In the mining sector, stocks were broadly lower. Glencore (LON:GLEN) dropped 0.56% and Randgold Resources (LON:RRS) retreated 0.95%, while Anglo American (LON:AAL) lost 1.42% and Antofagasta (LON:ANTO) tumbled 1.52%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.01% uptick, S&P 500 futures a 0.03% dip, while the Nasdaq 100 futures indicated a 0.01% gain.

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