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European stocks steady to higher ahead of U.S. data; Dax up 0.12%

Published 08/02/2013, 03:55 AM
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Investing.com - European stocks edged higher on Friday, after the release of relatively positive Spanish unemployment data, although investors remained cautious ahead of a highly anticipated U.S. employment report later in the day.

During European morning trade, the EURO STOXX 50 rose 0.28%, France’s CAC 40 dipped 0.01%, while Germany’s DAX 30 added 0.12%.

Official data showed that the number of unemployed people in Spain fell for the fifth consecutive month in July, declining by 64,900 after a 127,200 fall the previous month.

Analysts had expected the number of unemployed people to fall by 80,000 last month.

European stocks gained ground on Thursday after European Central Bank President Draghi said that the central bank’s monetary policy will remain accommodative “for an extended period of time”.

Financial stocks were mixed, as French lenders BNP Paribas and Societe Generale added 0.13% and 0.90%, while Germany's Deutsche Bank slid 0.80%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander declined 0.64% and 0.60% respectively, while Italy's Intesa Sanpaolo gained 0.75%.

Elsewhere, insurance company Allianz rallied 2.26% after saying net income rose to EUR1.59 billion from a year earlier, exceeding the average estimate. The company also said it expects a loss of about EUR200 million from a hailstorm in Germany last month.

Adding to gains, rival company Axa asurged 3.67% after saying first-half net income fell 3% to EUR2.47 billion, still beating the average estimate.

In London, FTSE 100 inched 0.03% higher.

Financial stocks were mixed, as shares in HSBC Holdings and Lloyds Banking climbed 0.30% and 2.73%, while Barclays slid 0.62% and the Royal Bank of Scotland plummeted 3.63%.

Meanwhile, mining stocks were mostly lower. BHP Billiton and Polymetal tumbled 1.25% and 2.46% respectively, while Randgold Resources and Fresnillo dove 3.95% and 4.24%.

On the upside, IAG rallied 3.06% after the parent of British Airways posted operating profit of EUR245 million, compared with a EUR4 million loss in the year-earlier period.

In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a 0.11% gain, S&P 500 futures signaled a 0.11% rise, while the Nasdaq 100 futures indicated a 0.19% increase.

Later in the day, the U.S. was to release official data on non-farm employment change and the unemployment rate, as well as a report on factory orders.


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