Forexpros – European stocks pared gains on Tuesday, following a series of mixed euro zone economic data and as investors remained cautious ahead of the release of a number of U.S. reports.
During European afternoon trade, the EURO STOXX 50 rose 0.25%, France’s CAC 40 added 0.23%, while Germany’s DAX 30 climbed 0.67%.
Sentiment slightly weakened after Eurostat said that the euro zone’s gross domestic product contracted by 0.2% in the three months to June, in line with expectations, bringing the annualized rate of contraction to 0.4%.
The report came after official data showed that Germany’s economy expanded by 0.3% in the second quarter, slightly better than expectations for 0.2% growth, and France’s economy stagnated in the second quarter, beating expectations for a 0.1% contraction.
Meanwhile, the ZEW Centre for Economic Research said that its index of German economic sentiment came in at minus 25.5 for August; down from July’s reading of minus 19.6 and defying expectations for a reading of minus 19.3.
Financial stocks remained mostly higher, led by Italian lenders Intesa Sanpaolo and Unicredit, up 1.63% and 1.16%.
Germany’s Deutsche Bank and Commerzbank rose 0.20% and 0.85%, while French lenders BNP Paribas and Societe Generale dropped 0.12% and 0.74% respectively.
Elsewhere, Galp Energia surged 2.60% after Portugal’s biggest oil producer said tests confirmed the presence of good quality crude at the Carcara well, located off the coast of Brazil. Galp holds a 14% stake in the consortium exploring the Carcara well.
On the downside, Germany’s largest builder Hochtief tumbled 2%, after saying that its profit targets for the year have become more challenging. In addition, the company posted a second-quarter net loss of EUR15 million.
In London, FTSE 100 rose 0.29%, after official data showed that consumer inflation rose unexpectedly in July.
Scotland’s biggest insurer, Standard Life, surged 6.62%, as operating profit climbed to GBP302 million from GBP262 million a year earlier, thanks to increased sales of fee-based savings products and lower acquisition costs.
Meanwhile, Standard Chartered advanced 0.94%, trimming earlier gains, as the U.K. lender pursued talks to reach an early settlement over charges it hid USD250 billion of transactions tied to Iran.
Elsewhere in financial stocks, shares in HSBC Holdings climbed 0.53% and Barlcays added 0.29%, while Lloyds Banking and the Royal Bank of Scotland fell 0.22% and 0.45% respectively.
Oil and gas major Anglo American remained higher, with shares advancing 0.62%, as did BP, up 0.44%.
Mining giants BHP Billiton and Rio Tinto turned lower on the other hand, shedding 0.13% and 0.60% respectively.
In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a 0.14% rise, S&P 500 futures signaled a 0.14% increase, while the Nasdaq 100 futures indicated a 0.10% gain.
Later in the day, the U.S. was to publish official data on retail sales and producer price inflation, followed by data on business inventories.
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