European stocks push higher, eyes on ECB; Dax up 1%
Published May 07, 2013 07:14AM ET
Investing.com - European stocks extended gains on Tuesday, boosted by bank earnings reports and new indications of a potential rate cut by the European Central Bank, after recent economic data out of the euro zone sparked fresh concerns over the outlook for growth in the bloc.
During European afternoon trade, the EURO STOXX 50 gained 0.85%, France’s CAC 40 advanced 0.65%, while Germany’s DAX 30 jumped 1%.
ECB President Mario Draghi said the bank would monitor all euro zone economic data in the coming weeks and was ready to act if needed, suggesting that the bank could cut rates further in order to support the euro zone economy.
In a speech in Rome, Draghi said last week’s rate cut by the ECB was due to the economic slowdown in the euro zone affecting core economies and urged governments to make fiscal consolidation a priority.
Financial stocks remained broadly higher, as shares in French lenders BNP Paribas and Societe Generale jumped 1.57% and 5.22%, while Germany's Deutsche Bank and Commerzbank rallied 1.67% and 1.71%.
Societe Generale said earlier that first-quarter profit dropped 50% to EUR364 million euros, still beating the EUR317 million average estimate, while Commerzbank reported a first-quarter loss of EUR94 million, beating the average loss estimate of EUR153.7 million.
Peripheral lenders added to gains, with Spanish banks BBVA and Banco Santander advancing 1.08% and 1.08% respectively, while Italy's Intesa Sanpaolo and Unicredit surged 1.02% and 2.45%.
On the downside, Alstom dove 8.14% as the world’s third-largest power-equipment maker cut its profitability forecast after full-year earnings missed market estimates.
In London, FTSE 100 climbed 0.44%, as U.K. lenders tracked their Eurpean counterparts higher.
Lloyds Banking jumped 1.46% and Barclays rallied 2.92%, while HSBC Holdings surged 2.97% after saying first-quarter profit almost doubled, beating analyst estimates. The Royal Bank of Scotland underperformed on the other hand, sliding 0.28%.
Meanwhile, mining giants Rio Tinto and BHP Billiton held gains, up 2.46% and 1.81% respectively, while Eurasian Natural Resources soared 4.77%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.23% increase, S&P 500 futures signaled a 0.12% gain, while the Nasdaq 100 futures indicated a 0.22% rise.
Also Tuesday, Germany factory orders jumped by a seasonally adjusted 2.2% in March, official data showed, compared to expectations for a 0.5% decline.
Year-over-year, German factory orders fell 0.4% in March, better than forecasts for a 2.9% decline.
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Written By: Investing.com
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