RTTNews - The major European markets are likely to open mixed on Tuesday following sharp gains in the past six sessions. While positive Wall Street and Asian cues may help improve investor sentiment, weaker commodity prices may lead to some profit taking.
British public sector finances and Switzerland's trade balance reports due from European economies may influence trading in today's session. Public sector net borrowing is expected to fall to GBP 15.5 billion in June from GBP 19.9 billion in May.
After hitting new highs in early trading, Asian stocks pared their initial gains on Tuesday, with participants choosing to cash in on the recent rally.
Meanwhile, the major U. S. averages kicked off the week on a positive note overnight, boosted by promising earnings results and reassuring news from commercial lending giant CIT Group. While quarterly results from Halliburton Co, M&T Bank Corp, Hasbro, Eaton, and Johnson Controls largely exceeded Wall Street expectations, bolstering trader optimism, a report from the Conference Board showed that its index of leading economic indicators increased by more than expected in June, although both the coincident index and lagging index continued to decline. The Dow Jones Industrial Average moved up 1.19%, the Nasdaq Composite rose 1.2% and the S&P 500 index advanced 1.14%.
After rising above $64 a barrel, crude oil futures finished at $63.98, up 42 cents from Friday's close on Monday amid strong corporate earnings, a weak dollar and news of a rescue package for troubled U.S. Lender CIT Group. In Asian trading on Tuesday, the commodity was last trading at $63.74 a barrel, down 0.38% ahead of the release of a weekly inventory report from the U.S. Energy Administration Department due on Wednesday.
In corporate news, General Motors said that it has received three final bids for GM Europe, the business that controls Vauxhall in the UK and Opel on the Continent.
Deutsche Bank AG dismissed two top executives following an internal investigation into whether the company conducted surveillance on a board member and others, the Wall Street Journal reported Tuesday, citing people familiar with the matter.
French utility Veolia Environnement's Veolia transport division won a $1.5 billion tram management and maintenance contract in Houston, Texas.
Volkswagen AG will invest $1 billion to increase its plant capacities, modernize production lines and develop a new compact sedan at its plant in Mexico, Volkswagen's head of Mexico operations, Otto Lindner said at the automaker's plant in the city of Puebla.
Continental AG proposes to raise 1 billion euros ($1.42 billion) in a share sale to maneuver for the heavily-indebted company, said the Financial Times Deutschland's report.
The European markets rose for the sixth day on Monday on further evidence that the U.S. recession is easing. The FTSEuofirst 300 index of pan-European blue chips closed 1.22% higher, while the narrower DJ Stoxx 50 index rose 1.23%. Around Europe, the U.K.'s FTSE 100 index advanced 1.25%, France's CAC 40 index gained 1.63% and Germany's DAX index added 1.04%.
For comments and feedback: contact email@example.com