AFP
Europe’s stock markets pushed higher yesterday, undoing the previous day’s losses despite concerns about the impact of harsher EU sanctions against Russia and mixed earnings reports.
Frankfurt’s main DAX index won 0.58% compared with Monday’s closing values to end the day at 9,653.63 points.
London’s benchmark FTSE 100 index rose 0.29% to 6,807.75 points, while in Paris the CAC 40 gained 0.48% to 4,365.58 points.
But investors remained cautious amid news the EU has agreed to impose asset freezes and travel bans on four firms and four close business associates of Russian President Vladimir Putin over the Ukraine crisis.
Concern about the impact of the EU-Russia tensions sent investors flocking to the perceived safety of German debt, with bunds hitting a record low yesterday morning.
The European single currency also fell to $1.3416 from $1.3438.
US stocks opened higher, lifted by earnings from drug makers Pfizer and Merck that topped Wall Street estimates.
Five minutes into trading, the Dow Jones Industrial Average gained 0.14% to 17,006.31.
The broad-based S&P 500 0.13% to 1,981.55, while the tech-rich Nasdaq Composite Index increased 0.24% to 4,455.40.
Shares in UBS slid 0.96 after the leading Swiss bank turned in a strong profit performance in the second quarter, even as it highlighted the stark risks financial institutions face from campaigns by tax and regulatory bodies.
A heavier tax bill dragged down second-quarter net profits at Deutsche Bank, Germany’s biggest lender, by 29%. Shares were largely flat after the news at 0.07%.
British engineering firm GKN topped the London FTSE risers board, jumping 8.54% after it posted surging first-half profits and hiked its shareholder dividend.
In Paris, shares in auto maker Renault slid 4.29% to €66.51 on disappointing results notably because of poor cash flow.
In London, energy major BP saw its share price slide after warning that more sanctions on Russia could “adversely impact” its performance.
The group has been unaffected so far by US sanctions imposed on Russia, reporting a two-thirds boost to second-quarter net profits from the equivalent figure last year.
BP shares had risen earlier after the company revealed that net profits soared 65% to $3.369bn (€2.508bn) in the second quarter.
That was boosted by its sale of its 50% stake in joint venture TNK-BP to Russian state oil giant Rosneft.
At 1452 GMT, BP was trading down 1.94% in London.
The euro rose to 79.20 British pence from 79.12 on Monday. The pound decreased to $1.6938 from $1.6983.
The price of gold advanced to $1,307.50 an ounce on the London Bullion Market from $1,304.50 on Monday.
