Investing.com - European stock markets held gains in choppy trade on Tuesday, amid strong gains in auto stocks and hopes for new stimulus measures in China while concerns over Spain’s ailing banking sector continued to weigh.
During European afternoon trade, the EURO STOXX 50 edged up 0.03%, France’s CAC 40 added 0.49%, while Germany’s DAX 30 climbed 0.68%.
Hopes for fresh monetary easing by China to support growth in the world’s second largest economy helped support market sentiment.
Speculation for near-term monetary easing has been growing after Beijing pledged to speed up approvals for new infrastructure-related projects last week.
Meanwhile, investors remained cautious after the yield on Spain’s 10-year bond rose to 6.47% on Monday, the highest level this year after the government announced that it was to recapitalize one of the country’s largest commercial lenders, Bankia.
The announcement fuelled fears that the rising cost of bank rescues could force Madrid into seeking an international bailout.
Spanish lenders extended earlier losses as shares in Banco Santander plummeted 3.34% and BBVA plunged 3%. Bankia saw shares tumble 9.74%, after plummeting over 28% on Monday as trading resumed. Trading of the stock had been temporarily suspended on Friday.
Other European lenders also turned broadly lower, as Germany’s Deutsche Bank and Commerzbank declined 0.63% and 0.07% respectively, while France’s biggest lenders BNP Paribas and Societe Generale retreated 0.86% and 1.30%.
Meanwhile, auto makers led gains with shares in Volkswagen up 3.09% and BMW surging 2.31%, while Renault and Peugeot advanced 1.82% and 1.79%.
In London, commodity-heavy FTSE 100 rose 0.19%, supported by strong gains in energy stocks and after data showed that U.K. realized sales rose unexpectedly in May.
Essar Energy was one of the session’s top gainers, with shares soaring 4.08%, closely followed by Tullow Oil, up 2.51%.
Meanwhile, copper producers Xstrata and Kazakhmys extended earlier gains, climbing 2.11% and 1.67% respectively, on the back of rising copper prices.
Mining giants Rio Tinto also remained sharply higher, advancing 1.62%, as did Anglo American and Bhp Billiton, with shares jumping 1.49% and 1.27%.
Elsewhere, U.K. baker Greggs Plc rallied 6.76% after U.K. Chancellor of the Exchequer George Osborne reversed a plan to make hot takeaway snacks subject to value-added tax. The decision was considered to be one of the most controversial measures in his March 21 budget.
On the downside, U.K. lenders tracked their European counterparts lower, as shares in the Royal Bank of Scotland plummeted 2.53% and Lloyds Banking declined 1.54%, while Barclays and HSBC Holdings retreated 0.99% and 0.15%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to rise of 0.60%, S&P 500 futures signaled a 0.59% gain, while the Nasdaq 100 futures indicated a 0.73% jump.
Later in the day, Germany was to release preliminary data on consumer price inflation, while the U.S. was to release reports on house price inflation and consumer confidence.
During European afternoon trade, the EURO STOXX 50 edged up 0.03%, France’s CAC 40 added 0.49%, while Germany’s DAX 30 climbed 0.68%.
Hopes for fresh monetary easing by China to support growth in the world’s second largest economy helped support market sentiment.
Speculation for near-term monetary easing has been growing after Beijing pledged to speed up approvals for new infrastructure-related projects last week.
Meanwhile, investors remained cautious after the yield on Spain’s 10-year bond rose to 6.47% on Monday, the highest level this year after the government announced that it was to recapitalize one of the country’s largest commercial lenders, Bankia.
The announcement fuelled fears that the rising cost of bank rescues could force Madrid into seeking an international bailout.
Spanish lenders extended earlier losses as shares in Banco Santander plummeted 3.34% and BBVA plunged 3%. Bankia saw shares tumble 9.74%, after plummeting over 28% on Monday as trading resumed. Trading of the stock had been temporarily suspended on Friday.
Other European lenders also turned broadly lower, as Germany’s Deutsche Bank and Commerzbank declined 0.63% and 0.07% respectively, while France’s biggest lenders BNP Paribas and Societe Generale retreated 0.86% and 1.30%.
Meanwhile, auto makers led gains with shares in Volkswagen up 3.09% and BMW surging 2.31%, while Renault and Peugeot advanced 1.82% and 1.79%.
In London, commodity-heavy FTSE 100 rose 0.19%, supported by strong gains in energy stocks and after data showed that U.K. realized sales rose unexpectedly in May.
Essar Energy was one of the session’s top gainers, with shares soaring 4.08%, closely followed by Tullow Oil, up 2.51%.
Meanwhile, copper producers Xstrata and Kazakhmys extended earlier gains, climbing 2.11% and 1.67% respectively, on the back of rising copper prices.
Mining giants Rio Tinto also remained sharply higher, advancing 1.62%, as did Anglo American and Bhp Billiton, with shares jumping 1.49% and 1.27%.
Elsewhere, U.K. baker Greggs Plc rallied 6.76% after U.K. Chancellor of the Exchequer George Osborne reversed a plan to make hot takeaway snacks subject to value-added tax. The decision was considered to be one of the most controversial measures in his March 21 budget.
On the downside, U.K. lenders tracked their European counterparts lower, as shares in the Royal Bank of Scotland plummeted 2.53% and Lloyds Banking declined 1.54%, while Barclays and HSBC Holdings retreated 0.99% and 0.15%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to rise of 0.60%, S&P 500 futures signaled a 0.59% gain, while the Nasdaq 100 futures indicated a 0.73% jump.
Later in the day, Germany was to release preliminary data on consumer price inflation, while the U.S. was to release reports on house price inflation and consumer confidence.