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Stocks - European Markets Mostly Higher Despite Geopolitical Tensions

Published 11/29/2017, 03:33 AM
© Reuters.  Frankfurt Stock Exchange
UK100
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FCHI
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DE40
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STOXX50
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HSBA
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BARC
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LLOY
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NWG
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SIEGn
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DBKGn
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CBKG
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BNPP
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SOGN
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AIR
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BBVA
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SAN
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IMB
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RIO
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BHPB
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RRS
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RR
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ISP
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CRDI
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ESZ24
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1YMZ24
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NQZ24
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GLEN
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Investing.com - European markets opened mostly higher on Wednesday, helped by news of a Brexit deal between the European Union and the UK and despite reports of a new North Korean missile test.

The EURO STOXX 50 climbed 0.52%, France’s CAC 40 advanced 0.51%, while Germany’s DAX 30 was up 0.70% by 03:35 a.m. ET (07:35 GMT).

North Korean said on Wednesday that it had successfully launched a new type of intercontinental ballistic missile that it claimed was capable of reaching the U.S. mainland.

In reponse, President Donald Trump said: "It is a situation that we will handle."

But sentiment was boosted in Europe following reports the UK and the EU reached a deal on a Brexit divorce bill on Tuesday. The final total will reportedly be around €50 billion.

Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) rallied 0.86% and 1.32%, while Germany's Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) jumped 1.11% and 1.19%

Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) gained 0.84% and 1.58% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) advanced 1.62% and 1.30%.

Elsewhere, Siemens AG (DE:SIEGn) shares rallied 1.21% following news it teamed up with Rolls-Royce (LON:RR) and Airbus Group SE (PA:AIR) to develop a hybrid electric engine, in a move to advance battery technology and electric motors and progressively abandon fossil fuels.

Shares in Airbus were up 0.64% in early European trade, while Rolls-Royce slipped 0.17%.

In London, commodity-heavy FTSE 100 declined 0.43%, weighed by losses in the mining sector.

Shares in Glencore (LON:GLEN) dropped 0.68% and Rio Tinto (LON:RIO) declined 0.70%, while BHP Billiton (LON:BLT) and Randgold Resources (LON:RRS) tumbled 1.01% and 1.99% respectively.

Imperial Brands (LON:IMB) added to losses, with shares down 1.40% after the company said on Tuesday that holesaler Palmer & Harvey's decision to enter administration may impact its 2017 operating profit.

Meanwhile, financial stocks were broadly higher as the Royal Bank of Scotland (LON:RBS) advanced 1.07% and Lloyds Banking (LON:LLOY) jumped 1.77%, while Barclays (LON:BARC) surged 1.98%. HSBC Holdings (LON:HSBA) underperformed however, with shares down 0.23%.

In the U.S., equity markets pointed to a steady to higher open. The Dow Jones Industrial Average futures pointed to a 0.17% increase, S&P 500 futures signaled a flat open, while the Nasdaq 100 futures indicated a 0.01% uptick.

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