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European Stocks Modestly Higher as German Economy Steams Ahead


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European equity benchmarks were higher on Tuesday morning after positive economic growth data in Germany boded well for the rest of the Eurozone and a raft of positive earnings reports infused confidence into trading sentiment.

Third quarter gross domestic product( GDP ) rose by 0.8% in Germany, the Eurozone's largest economy, when compared to the second quarter of 2017, according to Destatis, the federal statistical office. This surpassed economists' estimates for growth of about 0.6% during the quarter. In the first half of 2017, GDP had also increased markedly, by 0.6% in the second quarter and 0.9% in the first quarter.

Oil prices were fractionally lower after the International Energy Agency lowered its forecast for oil demand growth, according to reports. West Texas Intermediate crude oil futures were 0.3% lower at $56.62 per barrel while Brent crude, the international gauge, was down by 0.2% at $63.04 per barrel in recent trade.

In equities, supermarket chain Tesco was 4.9% higher on London's FTSE 100 Index after its merger with Booker was provisionally cleared by Britain's competition watchdog, telecommunications major Vodafone Group was up by 4.3% after raising its forecast for full year growth from 4%-to-8% to "around 10%" in a trading update. NMC Health was 4.1% higher and Shire, a health care company, was up by 2.0%.

On Frankfurt's DAX, Infineon, a manufacturer of semiconductors, was leading the gainers, up by 4.4%, airline operator Lufthansa was up by 1.6% and E.ON, an energy company, was 0.8% higher. Deutsche Bank was up by 0.6%. And, on Paris' CAC-40, Vivendi, an entertainment company, was 2.5% higher, STMicroelectronics, a semiconductor manufacturer, was 2.4% higher and Bouygues, a telecommunications, media and construction company, was up by 1.6%. Safran, a manufacturer of rocket engines and propulsion systems, was 1.5% higher.

The pan-European Stoxx 600 Index was 0.11% higher, London's FTSE 100 Index was up by 0.15%, Frankfurt's DAX was 0.32% higher and Paris' CAC-40 was up by 0.38% at the time of writing.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.



This article appears in: Investing , Stocks
Referenced Symbols: GDP , DAX


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