Forexpros – European stock markets remained higher on Tuesday, as investors eyed the release of U.S. economic reports, while concerns over the euro zone’s debt crisis remained following a series of government debt auctions.
During European afternoon trade, the EURO STOXX 50 climbed 0.83%, France’s CAC 40 jumped 1.10%, while Germany’s DAX 30 rose 0.66%.
Investors remained cautious after Spain sold EUR725 million of three-month bonds at a yield of 0.63%, up from 0.38% in March and EUR1.2 billion of six-month bonds at a yield of 1.58%, up from 0.83% last month.
Meanwhile, Italy auctioned EUR3.34 billion of government bonds at the highest costs since January.
Market sentiment was supported however after The Netherlands successfully auctioned EUR1.99 billion of two and 25-year government bonds.
The results of the auction were closely watched amid fears that the country could lose its triple-A credit rating following the collapse of the government on Monday after talks on the 2013 austerity budget failed.
Financial stocks remained broadly higher, led by Italian lender Intesa Sanpaolo, up 2.61%, and Unicredit, whose shares surged 2.22%.
France’s BNP Paribas and Societe Generale also rose 1.48% and 1.29%, but German lenders Deutsche Bank and Commerzbank saw shares decline 0.91% and 0.52%.
Deutsche Bank AG’s supervisory board was facing opposition ahead of May’s annual general meeting, with a large institutional investor criticizing the German banking giant on various issues.
Meanwhile, Michelin soared 7.09% after the world’s second-largest tire maker said first-quarter revenue rose 5.1% to EUR5.3 billion on higher demand for specialty tires to equip earthmovers, aircraft and agricultural vehicles.
In London, FTSE 100 rose -%, after data showed that public sector borrowing in the U.K. rose more-than-expected last month, while the country’s debt-to-GDP ratio rose to a record high 8.3%.
In financial stocks, Lloyds Banking jumped 1.99% and Barclays added 1.26%, while HSBC Holdings advanced 0.16%.
However, shares in the Royal Bank of Scotland remained lower, dropping 0.91%, after TSYS announced on Monday that it finalized a long-term agreement with the U.K. lender to continue payment processing and related services for its UK, Irish and US consumer credit and commercial businesses.
Mining giants Rio Tinto and Bhp Billiton also turned lower, with shares retreating 0.60% and 0.66%, while copper producers Xstrata and Kazakhmys advanced 0.95% and 0.06% respectively.
Meanwhile, Cove Energy surged 3.92% after agreeing to be bought by Royal Dutch Shell as Europe’s largest oil company raised its bid to GBP1.12 billion.
Elsewhere, Capita plunged 6.04% after the company that provides a criminal-records service for the U.K. Home Office said it is selling 40 million new shares.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to rise of 0.29%, S&P 500 futures signaled a 0.39% increase, while the Nasdaq 100 futures indicated a 0.55% gain.
Also Tuesday, official data showed that industrial new orders in the euro zone dropped unexpectedly in February, declining 1.3% after a 2.9% fall the previous month. Analysts had expected industrial new orders to rise 1.4% in February.
Later in the day, the U.S. was to release a report on house price inflation, as well as a Conference Board report on consumer confidence and government data on new home sales.
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