Investing.com - European stock markets rose in choppy trade on Thursday, after positive German economic data and as Ireland was expected to approve the European Union’s fiscal pact later in the day, while concerns over the handling of Spain’s financial woes remained:
During European morning trade, the EURO STOXX 50 added 0.49%, France’s CAC 40 climbed 0.55%, while Germany’s DAX 30 rose 0.28%.
Official data showed earlier that the number of unemployed people in Germany was unchanged in May, while the country’s unemployment rate dropped to a record low of 6.7%.
The report came after data showed that German retail sales rose more-than-expected in April, ticking up 0.6% after a 1.6% increase the previous month.
But sentiment remained under pressure amid growing expectations for a Spanish bailout after Spanish 10-year bonds climbed to 6.7% on Wednesday, nearing the critical 7% threshold.
Italian borrowing costs also rose sharply after a 5 and 10-year bond auctions on Wednesday met with lackluster investor demand, indicating that concerns over Spain and uncertainty over the outcome of elections in Greece next month are having a negative impact on Italy.
Financial stocks were broadly higher, as shares in French lenders BNP Paribas and Societe Generale climbed 1.02% and 0.66%, while Germany’s Deutsche Bank and Commerzbank advanced 0.36% and 0.15% respectively.
Peripheral lenders also added to gains with shares in Spain’s BBVA and Banco Santander rising 1.05% and 0.24%, while Italian lenders Intesa Sanpaolo and Unicredit gained 0.80% and 0.49%.
Troubled Spanish lender Bankia remained lower, on the other hand, with shares dropping 4.76% as the European Commission pressured Spain’s government to lay out its plans for the bank’s EUR19 billion recapitalization.
Meanwhile, shares in Spain’s largest phone company, Telefonica surged 2.18% after its board approved Wednesday a proposal to seek an initial public offering for O2 Germany, and to explore possible listings for its Latin American assets.
In London, FTSE 100 advanced 0.76%, supported by strong gains in financial stocks while data showed that U.K. consumer confidence improved in May.
Lloyds Banking led gains, with shares jumping 1.64%, while HSBC Holdings advanced 0.99%, the Royal Bank of Scotland climbed 0.60% and Barclays added 0.38%.
Shares in Logica skyrocketed 63.77%, after Montreal-based CGI announced it had reached an agreement to buy the U.K. computer-services provider in a GBP1.7 billion cash transaction.
Elsewhere, mining giant Rio Tinto rose 0.34%, while rival group Bhp Billiton fell 0.13% after saying that its recent move to reconsider major spending plans may delay the construction of a promised potash mine in Saskatchewan, Canada.
Copper producers were also mixed as shares in Xstrata edged down 0.06%, while Kazakhmys saw shares advance 0.59%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to rise of 0.27%, S&P 500 futures signaled a 0.27% gain, while the Nasdaq 100 futures indicated a 0.22% increase.
Later in the day, Ireland was to vote on the European Union's Stability Treaty, while preliminary data was to be released on consumer price inflation in the euro zone. European Central Bank President Mario Draghi was also due to speak.
In the U.S., reports were to be published on non-farm employment change and unemployment claims, as well as preliminary gross domestic product data.
During European morning trade, the EURO STOXX 50 added 0.49%, France’s CAC 40 climbed 0.55%, while Germany’s DAX 30 rose 0.28%.
Official data showed earlier that the number of unemployed people in Germany was unchanged in May, while the country’s unemployment rate dropped to a record low of 6.7%.
The report came after data showed that German retail sales rose more-than-expected in April, ticking up 0.6% after a 1.6% increase the previous month.
But sentiment remained under pressure amid growing expectations for a Spanish bailout after Spanish 10-year bonds climbed to 6.7% on Wednesday, nearing the critical 7% threshold.
Italian borrowing costs also rose sharply after a 5 and 10-year bond auctions on Wednesday met with lackluster investor demand, indicating that concerns over Spain and uncertainty over the outcome of elections in Greece next month are having a negative impact on Italy.
Financial stocks were broadly higher, as shares in French lenders BNP Paribas and Societe Generale climbed 1.02% and 0.66%, while Germany’s Deutsche Bank and Commerzbank advanced 0.36% and 0.15% respectively.
Peripheral lenders also added to gains with shares in Spain’s BBVA and Banco Santander rising 1.05% and 0.24%, while Italian lenders Intesa Sanpaolo and Unicredit gained 0.80% and 0.49%.
Troubled Spanish lender Bankia remained lower, on the other hand, with shares dropping 4.76% as the European Commission pressured Spain’s government to lay out its plans for the bank’s EUR19 billion recapitalization.
Meanwhile, shares in Spain’s largest phone company, Telefonica surged 2.18% after its board approved Wednesday a proposal to seek an initial public offering for O2 Germany, and to explore possible listings for its Latin American assets.
In London, FTSE 100 advanced 0.76%, supported by strong gains in financial stocks while data showed that U.K. consumer confidence improved in May.
Lloyds Banking led gains, with shares jumping 1.64%, while HSBC Holdings advanced 0.99%, the Royal Bank of Scotland climbed 0.60% and Barclays added 0.38%.
Shares in Logica skyrocketed 63.77%, after Montreal-based CGI announced it had reached an agreement to buy the U.K. computer-services provider in a GBP1.7 billion cash transaction.
Elsewhere, mining giant Rio Tinto rose 0.34%, while rival group Bhp Billiton fell 0.13% after saying that its recent move to reconsider major spending plans may delay the construction of a promised potash mine in Saskatchewan, Canada.
Copper producers were also mixed as shares in Xstrata edged down 0.06%, while Kazakhmys saw shares advance 0.59%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to rise of 0.27%, S&P 500 futures signaled a 0.27% gain, while the Nasdaq 100 futures indicated a 0.22% increase.
Later in the day, Ireland was to vote on the European Union's Stability Treaty, while preliminary data was to be released on consumer price inflation in the euro zone. European Central Bank President Mario Draghi was also due to speak.
In the U.S., reports were to be published on non-farm employment change and unemployment claims, as well as preliminary gross domestic product data.