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European Market Updates
11/24/2009 1:49 AM ET
(RTTNews) -
After a sharp rally in the previous session, European stocks are likely to open on a subdued note Tuesday morning. The undertone may remain cautious, as investors look ahead to the release of a slew of economic reports from the U.S, including the revised U.S GDP report, house prices and consumer confidence data and the minutes of the November monetary policy meeting of the Federal Reserve later in the day.
After a bright start, Asian stocks dipped into the red on Tuesday due to profit taking following recent gains. Crude oil prices hovered mostly unchanged below $78 a barrel in Asian trading amid conflicting economic data. The dollar stabilized in early trading on Tuesday after losing ground in New York, while the Dow futures are currently down 25 points in screen trade.
In economic news, even though the acute threat to global financial stability has abated, the situation still remains vulnerable with market sentiment still heavily reliant on support measures, the Dutch central bank said on Monday.
"The improved market sentiment relies heavily on the exceptional support measures, which have a disruptive effect and therefore need to be phased out in time," the De Nederlandsche Bank said in its semi-annual Overview of Financial Stability report.
Expressing a similar view, European Central Bank President Jean Claude Trichet said that it was still premature to declare the global financial crisis over, while he offered reassurance that the ECB was well prepared to unwind its unconventional measures in a gradual and timely manner.
On Wall Street, stocks rallied on Monday amid the release of encouraging home sales data and weakness in the U.S dollar. However, the major averages closed well off their highs as traders pared some long positions ahead of Thursday's Thanksgiving Day holiday. The Dow set a fresh yearly high closing up 1.29%, while the Nasdaq advanced 1.4% and the S&P 500 gained 1.36%.
In corporate news, European Union officials said Monday that decision to grant aid to automaker General Motors Co.'s Adam Opel GmbH unit will not be made until a meeting to be held in December.
French private-equity firm Wendel and and U.S. investment group Kohlberg Kravis Roberts & Co intend to cut their stake in French electronics firm Legrand SA by 11 percent.
Italian lender Banco Popolare SC plans to launch a convertible bond issue to raise up to 1 billion euros.
Belgian supermarket operator Delhaize Group SA said it has acquired 11 Koryfi stores and a warehouse for 7 million euros in cash through its subsidiary.
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