Forexpros – European stocks climbed higher Tuesday, as financial leaders agreed on a fiscal discipline treaty and reassuring word that a settlement is very close in the Greek debt talks.
After the close of European trade, the EURO STOXX 50 advanced 0.50%, France’s CAC 40 gained 1.01%, while Germany’s DAX surged 0.22%. Meanwhile, in the U.K. the FTSE 100 climbed 0.19%.
European leaders meeting in Brussels reached an agreement on a fiscal discipline treaty that includes sanctions for high deficit states and demands members to create laws to limit budget shortfalls.
In addition, the leaders also decided to launch the European Stability Mechanism on July 1st, one year ahead of the original plan.
However, Britain and the Czech Republic refrained from agreeing to the treaty, adding some nervousness to the day.
In Greek news, Prime Minister Lucas Papademos stated that he is “strongly committed” to reaching a debt deal, increasing the bullish sentiment.
Earlier, Portugal borrowing costs spiked to a euro era high, however Prime Minister Pedro Passos Coehlo calmed the markets by saying the debt is “perfectly sustainable” and there is no risk of writedowns on the bonds.
The unemployment rate hit a two decade low in Germany further fuelling the bullish sentiment on the session.
Meanwhile, consumer confidence and business activity both declined in the U.S., casting a bearish aura on the otherwise stock positive day.
Oil producers rallied as Japan’s industrial output climbed more than forecast with BP adding 2.9%, Shell climbing 0.7% and Total SA moving higher by 1.6%
ThyssenKrupp advanced 2.5% after agreeing to sell its Inoxum stainless steel unit to Outokumpu Oyj. Outokumpu Oyj gave back 15% on the deal.
ARM Holdings added 2.9% as the maker of Apple iPad and iPhone processors reported a 21% increase in fourth quarter revenue.
Vestas Wind Systems gained 3.5% after landing an order from China for a low wind turbine.
U.S. stocks traded lower mid session with the Dow30 off by 0.59%, the S&P500 down 0.32% and the Nasdaq lower by 0.35%.
Investors are awaiting euro zone’s preliminary consumer price inflation numbers.
The ADP employment numbers, the ISM manufacturing index, as well as crude oil stockpiles are on tap in the U.S. on Wednesday.
Forexpros
