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European stocks higher as Cyprus optimism still supports; Dax up 0.26%

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Investing.com - European stocks were higher on Tuesday, as optimism following the announcement of a bailout deal for Cyprus continued to support investor confidence, although comments by Eurogroup head Jeroen Dijsselbloem slightly dampened sentiment.

During European morning trade, the EURO STOXX 50 edged up 0.23%, France's CAC 40 climbed 0.53%, while Germany's DAX 30 added 0.26%.

Investors were cautious after the head of the Eurogroup, Jeroen Dijsselbloem, said on Monday that the rescue program agreed for Cyprus represents a new model for resolving euro zone banking problems and other countries may have to restructure their banking sectors.

He later appeared to backtrack, saying Cyprus was a specific case with exceptional challenges.

Early Monday, euro zone finance ministers rubber stamped a EUR10 billion international bailout for Cyprus that will see the closure of the country's second largest lender Laiki Bank and inflict heavy losses deposits of more than EUR100,000.

Financial stocks were mostly lower, as shares in French lenders BNP Paribas and Societe Generale declined 0.10% and 1.36%, while Germany's Commerzbank retreated 0.95%. Deutsche Bank overperformed on the other hand, climbing 0.57%.

Among peripheral lenders Italian banks Unicredit and Intesa Sanpaolo advanced 0.47% and 1.13%, while Spain's Banco Santander added 0.37%.

Elsewhere, German healthcare and pharmaceutical company Celesiorallied 2.30% after saying that earnings rose 4.5% to EUR579.6 million in 2012.

In London, FTSE 100 inched up only 0.09%, as gains were capped by losses in financial stocks.

Shares in Barclays tumbled 1.14% and the Royal Bank of Scotland plummeted 1.38%, while Lloyds Banking retreated 1.51%. HSBC Holding trended higher however, gaining 0.73%.

Meanwhile, mining stocks were mostly lower, with Rio Tinto sliding 0.37% and Eurasian Natural Resources plunging 5%, while copper producers Xstrata and Kazakhmys lost 0.09% and 10.02% respectively.

On the upside, Bellway surged 2.31% after the U.K. homebuilder said net income increased 51% in the six months ending January 31 to GBP46 million from a year earlier.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.19% rise, S&P 500 futures signaled a 0.20% gain, while the Nasdaq 100 futures indicated a 0.36% increase.

Later in the day, the U.S. was to release government reports on durable goods orders and new home sales as well as a report on consumer confidence.

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


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

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