The European markets are mostly higher on Tuesday, led by banks, as the Group of Seven holds an emergency meeting to discuss the European debt crisis. The Asian markets rose on hopes of intervention by policymakers.
Eurozone should develop a "proper fiscal union" ahead of any common debt management, German Finance Minister Wolfgang Schaeuble said in a newspaper interview. "The government has always said that before we can talk about common debt management, we need a proper fiscal union," Schaeuble told the business daily Handelsblatt. A fiscal union is a medium-term project, he said.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.26 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.09 percent.
The French CAC 40 is adding 0.42 percent and Switzerland's SMI is rising 0.15 percent. The German DAX is losing 0.88 percent. The UK market is closed on account of the Queen's Diamond Jubilee celebrations.
In Frankfurt, Deutsche Boerse is declining 1.9 percent. E.ON and RWE are losing 1.8 percent and 1.3 percent, respectively.
Daimler, BMW and Volkswagen are moderately lower.
Deutsche Bank is down 0.3 percent while Commerzbank is advancing 0.5 percent.
Detergent maker Henkel is climbing 1.5 percent. HeidelbergCement is rising 0.9 percent.
Retailer Fielmann is climbing 0.4 percent. Commerzbank raised the stock to "Hold" from "Reduce."
Deutsche Bank lowered its rating on HHLA to "Hold" from "Buy." The logistics firm is down 0.3 percent.
Deutsche Post will make a one-time payment of 516 million euros in the third quarter as additional value added tax. The stock is down 0.2 percent.
In Paris, BNP Paribas is gaining 2.3 percent. Societe Generale and Credit Agricole are advancing 1.2 percent and 1.1 percent, respectively.
Accor, Technip and Michelin are seeing notable gains.
Renault is rising 1.1 percent while Peugeot is losing 0.4 percent.
Metal fabrication firm Vallourec is losing 2.7 percent. STMicroelectronics is falling 1.3 percent.
France Telecom is losing 1.2 percent after a report that the firm is cutting its dividend.
Media group Lagardere increased its offer to purchase LeGuide.com to 28 euros per share from 24 euros per share. Shares are up 0.6 percent.
Swiss bakery business Aryzta said revenue climbed nearly 15 percent in the third quarter, helped by acquisitions, despite a challenging Europe. The company confirmed its full year earnings outlook. The stock is losing 2 percent.
Medical instruments maker Elekta reported increased profit for the fourth quarter, amid a 21 percent rise in sales and lower income taxes. The firm also announced a share split. The stock is plunging 5.2 percent.
Bankia and Bankinter are up over 3 percent each in Madrid.
In economic news, Germany's factory orders declined 1.9 percent in April from a month ago when it grew 3.2 percent, the Federal Ministry of Economy and Technology said. The rate of decline exceeded the 1.1 percent drop forecast by economists.
Eurozone retail sales declined more than expected by economists in April, data published by Eurostat revealed. Retail sales fell 1 percent month-on-month in April, compared to a 0.1 drop forecast by economists. This followed a 0.3 percent gain in March.
The Reserve Bank of Australia decided to slash its official cash rate, given the deteriorating global environment and weak domestic growth. The board announced a 25 basis point reduction in the cash rate to 3.5 percent, as expected by economists. The All Ordinaries index climbed 1.5 percent.
The RBA action has led to hopes of stimulus announcements from some other central banks due to announce their monetary policy decisions later this week.
China's service sector grew at the strongest pace in 19 months in May, offsetting the weakness in the manufacturing sector, a survey by Markit Economics revealed. The HSBC Business Activity Index was at 54.7 in May compared to 54.1 in April. Shanghai Composite Index edged up 0.2 percent.
Among other markets across Asia/Pacific, Hong Kong's Hang Seng rose 0.40 percent and Japan's Nikkei 225 climbed 1 percent.
In the U.S., futures point to a lower open on Wall Street. In the previous session, stocks showed a lack of direction over the course of the trading day after ending Friday's session substantially lower. The Dow edged down 0.1 percent, while the Nasdaq rose 0.5 percent and the S&P 500 crept up less than a tenth of a percent.
In the commodity space, crude for July delivery is losing $0.25 to $83.73 per barrel while August gold is adding $4.9 to $1618.8 a troy ounce.
by RTT Staff Writer
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