Forex Pros – European stock markets were up on Tuesday, rebounding from the previous day’s sharp decline as shares in raw material producers advanced after commodity prices strengthened, while U.S. futures indexes pointed to a higher open on Wall Street.
During European morning trade, the EURO STOXX 50 rose 0.4%, France’s CAC 40 gained 0.25%, while Germany’s DAX 30 climbed 0.6%.
Meanwhile, the commodity-heavy FTSE 100 was up 0.3% as mining stocks were the strongest performers, helped by rising metal prices. The world’s largest mining group BHP Billiton saw shares climb 1.7%, rival Rio Tinto rose 1.6%, while shares in silver producer Fresnillo climbed 2.25%.
The world’s largest commodities trader Glencore International, which made its trading debut in London last week jumped 2.45%.
However, gains were limited amid losses in the financial sector after Moody’s Investor Service said it would consider cutting its rating on 14 British lenders, as it reassesses the level of government support that is factored into their ratings.
Among the lenders being reviewed for a possible downgrade are the U.K. banking operations of Lloyds Banking Group, which dropped 1% and Barclays, which saw shares slide 0.9%.
Marks & Spencer saw shares slump 1.3% after the retailer offered a cautious full-year earnings outlook, saying trading conditions will be challenging due to high commodity prices and pressure on consumers’ disposable income.
Elsewhere, shares in wine and spirits producer Pernod Ricard climbed 1.3% after JP Morgan upgraded the stock to “overweight”, citing strong positive earnings momentum and attractive exposure to markets in China and India.
Shares in German fertilizer group K+S jumped 2.6% after Citigroup lifted its earnings estimate for the company due to higher potash prices.
Airliners were pressured as an ash cloud from a volcanic eruption in Iceland drifted towards the U.K., forcing the cancellation of hundreds of flights to and from Scotland and Northern England.
Air France-KLM saw shares drop 0.5%, Deutsche Lufthansa dipped 0.7%, while shares in British Airways slumped 1.2%.
The outlook for U.S. equity markets, meanwhile, was upbeat. The Dow Jones Industrial Average futures pointed to modest gain of 0.15%, S&P 500 futures indicated a rise of 0.3%, while the Nasdaq 100 futures added 0.15%.
Later in the day, the U.S. was to publish government data on new home sales.
ForexPros.com
