Wednesday July 15, 2009
LONDON : Europe's leading stock markets rose on Tuesday after strong US bank earnings and economic data, but doubt crept in with investors already looking anxiously ahead for more indicators, dealers said.
Bailed out US investment banking giant Goldman Sachs reported stronger than expected earnings of 3.44 billion dollars in the second quarter, topping market expectations and easing fears about a collapsing financial system.
The US government said retail prices rose for the second month in a row in June.
The reports gave markets a lift in early afternoon European trading, but analysts warned that investors were still haunted by uncertainty over the economic outlook.
"The market is still very much in a state of flux at the moment with both falls and rallies being short-lived," said Angus Campbell, a trader at Capital Spreads.
London's FTSE 100 index closed 0.85 percent higher at 4,237.68 points as European markets extended Monday's strong gains.
Frankfurt's DAX rose 1.26 percent to 4,781.69 points and in Paris the CAC 40 index rose 0.97 percent to close at 3,081.87.
Financial companies fared well in London trading, with Royal Bank of Scotland up 1.99 percent to 36.92 pounds and Lloyds Banking Group two percent to 65.8 pounds.
Likewise in Frankfurt, Deutsche Bank rose 2.60 percent to 46.69 euros and Commerzbank 0.61 percent to 4.91.
The Eurostoxx 50 composite index gained 0.90 percent.
Elsewhere there were gains of 0.70 percent on the Madrid stock exchange, 1.61 percent in Brussels, 0.94 percent on the Swiss Market Index, 0.85 percent in Amsterdam and 1.28 percent in Milan.
But analysts played down the apparent boost from the Goldman Sachs news as markets looked ahead to a wave of other banking results and economic data in coming days.
"With the lack of follow through this afternoon on the back of the Goldman Sachs's numbers, it could well be that this rally has now run its course," said David Jones, a strategist at IG Index.
Goldman's rivals JPMorgan Chase, Bank of America and Citigroup are all due to issue earnings reports this week. Markets were also awaiting US and eurozone inflation data, plus US manufacturing and housing reports.
US stocks struggled in early trade as investors took profits from a big rally on Wall Street, having already digested optimism over Goldman Sachs.
The Dow Jones Industrial Average dropped 0.36 percent to 8,301.67 in early trade. The technology-heavy Nasdaq dipped 0.31 percent to 1,787.70 while the broad-market Standard & Poor's 500 index edged down 0.24 percent to 898.92.
Goldman Sachs shares edged up 0.56 percent to 150.28 dollars, extending gains from Monday, but the rest of the finance sector was under pressure on Wall Street.
Japanese share prices closed up 2.34 percent on Tuesday, snapping a nine-day losing streak. Hong Kong soared 3.66 percent.
(AFP)
LONDON : Europe's leading stock markets rose on Tuesday after strong US bank earnings and economic data, but doubt crept in with investors already looking anxiously ahead for more indicators, dealers said.
Bailed out US investment banking giant Goldman Sachs reported stronger than expected earnings of 3.44 billion dollars in the second quarter, topping market expectations and easing fears about a collapsing financial system.
The US government said retail prices rose for the second month in a row in June.
The reports gave markets a lift in early afternoon European trading, but analysts warned that investors were still haunted by uncertainty over the economic outlook.
"The market is still very much in a state of flux at the moment with both falls and rallies being short-lived," said Angus Campbell, a trader at Capital Spreads.
London's FTSE 100 index closed 0.85 percent higher at 4,237.68 points as European markets extended Monday's strong gains.
Frankfurt's DAX rose 1.26 percent to 4,781.69 points and in Paris the CAC 40 index rose 0.97 percent to close at 3,081.87.
Financial companies fared well in London trading, with Royal Bank of Scotland up 1.99 percent to 36.92 pounds and Lloyds Banking Group two percent to 65.8 pounds.
Likewise in Frankfurt, Deutsche Bank rose 2.60 percent to 46.69 euros and Commerzbank 0.61 percent to 4.91.
The Eurostoxx 50 composite index gained 0.90 percent.
Elsewhere there were gains of 0.70 percent on the Madrid stock exchange, 1.61 percent in Brussels, 0.94 percent on the Swiss Market Index, 0.85 percent in Amsterdam and 1.28 percent in Milan.
But analysts played down the apparent boost from the Goldman Sachs news as markets looked ahead to a wave of other banking results and economic data in coming days.
"With the lack of follow through this afternoon on the back of the Goldman Sachs's numbers, it could well be that this rally has now run its course," said David Jones, a strategist at IG Index.
Goldman's rivals JPMorgan Chase, Bank of America and Citigroup are all due to issue earnings reports this week. Markets were also awaiting US and eurozone inflation data, plus US manufacturing and housing reports.
US stocks struggled in early trade as investors took profits from a big rally on Wall Street, having already digested optimism over Goldman Sachs.
The Dow Jones Industrial Average dropped 0.36 percent to 8,301.67 in early trade. The technology-heavy Nasdaq dipped 0.31 percent to 1,787.70 while the broad-market Standard & Poor's 500 index edged down 0.24 percent to 898.92.
Goldman Sachs shares edged up 0.56 percent to 150.28 dollars, extending gains from Monday, but the rest of the finance sector was under pressure on Wall Street.
Japanese share prices closed up 2.34 percent on Tuesday, snapping a nine-day losing streak. Hong Kong soared 3.66 percent.
(AFP)
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