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European stocks remain higher in light trade; Dax up 0.23%

Published 07/23/2013, 07:19 AM
Updated 07/23/2013, 07:20 AM
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Investing.com - European stocks remained higher in light trade on Tuesday, as expectations for a near-term end to the Federal Reserve's stimulus program eased, while comments by Portugal's Prime minister continued to support.

During European afternoon trade, the EURO STOXX 50 climbed 0.49%, France’s CAC 40 added 0.21%, while Germany’s DAX 30 edged up 0.23%.

Global equities gained ground after the U.S. National Association of Realtors said that existing home sales fell 1.2% to an annual rate of 5.08 million units in June, but still remained close to three-and-a-half year highs.

Meanwhile, European stocks also found support after Portugal’s Prime Minister Pedro Passos Coelho said Monday the current government will remain in office after political leaders resolved a deadlock that had threatened to derail the country's EUR78 billion bailout program.

Financial stocks remained broadly higher, as French lenders BNP Paribas and Societe Generale climbed 0.54% and 0.67%, while Germany's Deutsche Bank added 0.26%.

Peripheral lenders added to gains, with Spanish banks Banco Santander and BBVA jumping 2.21% and 3.17% respectively, while Italy's Intesa Sanpaolo and Unicredit rallied 2.19% and 2.23%.

Elsewhere, French company Vivendi surged 3.31% as it entered exclusive talks to sell its stake in Moroccan mobile operator Maroc Telecom to Emirates Telecommunications for EUR4.2 billion in order to sharpen its focus on media.

Also in company news, Telefonica's German unit agreed to buy Royal KPN's E-Plus mobile-phone business for EUR5 billion in cash and a stake in the combined entity to add users in the country and reduce costs. Shares in Telefonica were up 1.89% following the news.

In London, commodity-heavy FTSE 100 added 0.24%, supported by gains in the mining sector.

Mining giants Rio Tinto and BHP Billiton jumped 1.83% and 2.23% respectively, while rivals Evraz and Anglo American rallied 2.72% and 2.78%.

Meanwhile, financial stocks remained mostly higher, as HSBC Holdings advanced 0.70% and Barclays gained 0.59%, while the Royal Bank of Scotland rallied 1.42%. Lloyds Banking underperformed on the other hand, sliding 0.40%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.15% gain, S&P 500 futures signaled a 0.17% rise, while the Nasdaq 100 futures indicated a 0.24% increase.

Trade remained subdued as volumes in foreign exchange markets were lower due to the summer holidays.


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