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European Markets Climb On Earnings Optimism

The European markets ended Tuesday's session in the green, extending their gains from the previous session. Concerns over global trade continued to ease as investors look forward to earnings season. Optimism for strong corporate results overshadowed some disappointing economic data.

The pan-European Stoxx Europe 600 index advanced 0.45 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 0.37 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.36 percent.

The DAX of Germany climbed 0.53 percent and the CAC of France rose 0.67 percent. The FTSE 100 of the U.K. gained 0.05 percent and the SMI of Switzerland finished higher by 0.10 percent.

In Frankfurt, wind power group Nordex jumped 4.23 percent after bagging a 595 megawatt wind turbine order in Brazil.

Wacker Chemie jumped 3.67 percent after Societe Generale analysts raised their rating on the stock.

Volkswagen dipped 0.28 percent after a U.S. appeals court upheld its $10.03 billion settlement with car owners caught up in the company's emissions cheating scandal.

In London, Petrofac rose 2.19 percent. The oil and gas services company has received a contract valued around $200 million in total from TenneT, a Dutch-German transmission grid operator.

Social care services firm Cambian soared 34.28 percent after receiving a takeover approach from rival CareTech Holdings Plc.

Tesco dropped 2 percent as its U.K. chief executive, Charles Wilson, stepped down from the board following treatment for cancer.

TP ICAP tumbled 35.91 percent. The inter-dealer broker has fired Chief Executive Officer John Phizackerley amid mounting costs linked to Brexit.

Eurozone house prices grew at a faster pace in the three months ended March, Eurostat reported Tuesday. House prices climbed 4.5 percent year-over-year in the first quarter, following a 4.3 percent rise in the previous quarter.

German investor confidence fell to its lowest level in nearly six years in July, as sentiment was hurt by political uncertainty, survey data from the Centre for European Economic Research showed Tuesday.

The ZEW Indicator of Economic Sentiment for Germany dropped 8.6 points to minus 24.7 points, which was the lowest reading since August 2012, the Mannheim-based think tank said.

The score was also well below the long-term average of 23.2 points. Economists had forecast a reading of minus 18.5.

France's industrial production declined for the third straight month in May, defying economists' forecast for an increase, the statistical office Insee showed Tuesday. Industrial output dropped a seasonally adjusted 0.2 percent month-over-month in May, slower than the 0.5 percent fall in April. Meanwhile, it was expected to rise by 0.6 percent.

UK economic growth increased in May, led by services, while production declined, the first ever monthly GDP estimate from ONS revealed Tuesday. Gross domestic product rose 0.3 percent month-on-month in May after 0.2 percent increase in April and a flat reading in March.

UK industrial production decreased for the third straight month in May, defying economists' forecast for an increase, figures from the Office for National Statistics showed Tuesday. Industrial production fell 0.4 percent month-over-month in May, slower than April's revised 1.0 percent decline. In contrast, economists had expected a 0.5 percent rise for the month.

The UK visible trade deficit narrowed slightly in May, the Office for National Statistics reported Tuesday. The trade in goods showed a shortfall of GBP 12.36 billion in May, down from GBP 12.40 billion in April. The expected deficit was GBP 12.0 billion.

Consumer prices in China were up 1.9 percent on year in June, the National Bureau of Statistics said on Tuesday, in line with expectations and up from 1.8 percent in May. On a monthly basis, consumer prices eased 0.1 percent after sliding 0.2 percent in the previous month

by RTTNews Staff Writer

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