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European Stocks Rally as Oil Steadies After Sharp Overnight Falls

By Investors Hub

European stocks recovered further ground on Tuesday, as geopolitical worries abated, oil steadied after sharp overnight falls and the euro edged lower against the dollar, helped by comments from New York Federal Reserve President William Dudley backing another rate hike this year.

Meanwhile, the day’s economic reports painted a mixed picture of regional economies.

German GDP grew 0.6 percent sequentially in the second quarter, slightly slower than the 0.7 percent expansion seen in the first quarter, while U.K. consumer price inflation unexpectedly held steady at 2.6 percent in July, helping ease the pressure on the Bank of England to raise interest rates soon.

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The pan-European Stoxx Europe 600 index was up 0.2 percent at 376.74 in late opening deals after rising as much as 1.1 percent the previous day.

The German DAX was moving up 0.3 percent, France’s CAC 40 index was rising half a percent and the U.K.’s FTSE 100 was up 0.4 percent.

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Banks were broadly higher for a second day running after both Korean and U.S. leaders indicated a willingness to avert a deepening crisis over North Korea’s nuclear program.

Danone shares rallied nearly 2 percent on a Bloomberg report that activist fund Corvex Management has built a stake in the French yogurt maker.

Sainsbury’s advanced 1 percent after the British supermarket giant shelved plans to buy convenience store chain Nisa over fear of concerns from the U.K. competition watchdog.

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Retailer Next tumbled as much as 4 percent on a brokerage downgrade.

German potash miner K+S plunged 5 percent after its Q2 results fell short of market expectations.

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Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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