Forexpros – European stock markets were broadly higher on Tuesday, rebounding from the previous day’s sharp decline as shares in the technology and financial sectors led gains, while U.S. futures pointed to a higher open.
During European morning trade, the EURO STOXX 50 jumped 1.7%, France’s CAC 40 rose 1.2%, while Germany’s DAX 30 climbed 1.6%.
Shares in the technology sector were boosted after tech giant IBM reported stronger-than-expected second quarter earnings late Monday, as both hardware and software sales rose sharply.
The company also lifted its full-year earnings outlook, boosting earnings prospects for their European counterparts.
German chip maker Infineon Technologies saw shares jump 3.9%, Software AG shares rallied 7.1%, while semiconductor manufacturer STMicroelectronics saw shares gain 2.6%.
Shares in the financial sector rebounded, following Monday’s sharp losses after results from the European bank stress tests failed to ease concerns over the health of the region’s banking sector.
Commerzbank, which saw shares tumble almost 8% on Monday, advanced 4.9%. Shares in Europe’s largest retail lender BNP Paribas climbed 4.2%, rival Societe Generale gained 4.3%, while Deutsche Bank shares rose 3.1%.
Italian lenders Unicredit and Intesa Sanpaolo rallied 6% and 5.1% respectively, while Spain’s Banco Santander rose 3.3% after Italian and Spanish bond yields eased from Monday’s record levels.
Meanwhile, Europe’s second largest drug-maker Novartis saw shares jump 3.6% after reporting a 12% gain in second quarter net profit. Revenue in the quarter rose 27% to EUR10.62 billion, above expectations of EUR10.31 billion.
In London, the FTSE 100 advanced 0.75% as U.K. lenders tracked their European counterparts higher.
Barclays saw shares rally 4.7%, Royal Bank of Scotland shares gained 3.1%, while shares in Lloyds Banking Group jumped 4.4%.
Raw material producers were also higher, with BHP Billiton up 2.1%, while copper producers Xstrata and Anglo American added 1.7% and 1.85% respectively.
The outlook for U.S. equity markets was upbeat ahead of earnings reports from Apple, Bank of America and Goldman Sachs.
The Dow Jones Industrial Average futures pointed to a gain of 0.75%, S&P 500 futures rose 0.85%, while the Nasdaq 100 futures advanced 0.9%.
Later in the day, the U.S. was to release official data on building permits as well as a report on housing starts.
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