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European stocks remain higher after German data; Dax up 0.30%

Published 04/08/2013, 07:20 AM
Updated 04/08/2013, 07:21 AM
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Investing.com - European stocks remained higher on Monday, after the release of positive German data, although concerns over the handling of the debt crisis in the euro zone persisted.

During European afternoon trade, the EURO STOXX 50 gained 0.55%, France’s CAC 40 climbed 0.64%, while Germany’s DAX 30 rose 0.30%.

Official data showed that German industrial output rose 0.5% in February compared to expectations for a 0.3% increase. January’s figure was revised down to a decline of 0.6% from an initial flat reading.

The report came after market research group Sentix said its index of investor confidence for the euro zone fell to minus 17.3 in April from a reading of minus 10.6 in March. Analysts had expected the index to worsen to minus 13.1 this month.

Financial stocks were mixed. In France, Societe Generale slipped 0.12% and BNP Paribas advanced 0.41%, while in Germany, Deutsche Bank edged down 0.10%.

Among peripheral lenders, with Italian banks Unicredit and Intesa Sanpaolo gained 0.81% and 2.61% respectively, while Spain's Banco Santander jumped 1.54%.

Meanwhile, Portuguese lenders Banco Espirito Santo and Banco Comercial Portugues plunged 2.99% and and 1.18%, as the government said it will carry out more spending cuts to meet the terms of its EUR78 billion bailout after the Constitutional Court blocked a plan to suspend a monthly salary payment to state workers and pensioners.

In London, commodity-heavy FTSE 100 added 0.32%, supported by gains in mining stocks.

Eurasian Natural Resources and Polymetal remained sharply higher, with shares rallying 1.19% and 5.49% respectively. Rio Tinto and BHP Billiton turned lower however, sliding 0.30% and 0.35%.

Copper producers Xstrata and Kazakhmys added to gains, rising 0.27% and 2.14%.

Meanwhile, U.K. lenders turned mostly lower. Shares in HSBC Holdings edged down 0.26% and the Royal Bank of Scotland dropped 0.65%, while Lloyds Banking declined 0.66%. Barclays overperformed on the other hand, inching up 0.04%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.24% rise, S&P 500 futures signaled a 0.30% gain, while the Nasdaq 100 futures indicated a 0.30% increase.

Markets were also jittery after the Department of Labor on Friday said the U.S. economy added 88,000 jobs last month, the smallest increase since last June and far below forecasts for an increase of 200,000. The U.S. unemployment rate ticked down to 7.6% from 7.7% in February.


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