European stocks rise but geopolitical tensions linger; Dax up 0.48%
Investing.com - European stocks opened higher on Tuesday, although gains were expected to be capped by linger tensions between the U.S. and North Korea.
During European morning trade, the EURO STOXX 50 rose 0.35%, France’s CAC 40 added 0.29%, while Germany’s DAX 30 gained 0.48% by 03:30 a.m. ET (07:30 GMT).
Investors remained cautious following North Korea's latest provocation, when it conducted over the weekend a test of a hydrogen bomb intended to be mounted on an intercontinental ballistic missile.
U.S. Defense Secretary James Mattis on Sunday warned North Korea that any threat to the U.S. or its allies would be met with a “massive military response”.
On Monday, South Korea's defense ministry said it was still seeing signs that Pyongyang plans to launch more ballistic missiles.
Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) rose 0.32% and 0.31%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) added 0.05% and 0.18%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) both gained 0.35%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) edged up 0.01% and 0.18%.
Energy-related stocks added to gains, as oil prices moved back higher on Tuesday. French oil and gas major Total SA (PA:TOTF) saw shares advanced 0.45%, while Italy's ENI (MI:ENI) climbed 0.53% and Spanish rival Repsol (MC:REP) rallied 1.60%.
In London, commodity-heavy FTSE 100 rose 0.22%, helped by Barratt Developments PLC (LON:BDEV), whose shares jumped 1.86%, ahead of the release of its full-year figures on Wednesday.
Mining stocks were also broadly higher on the commodity-heavy index. Shares in Rio Tinto (LON:RIO) climbed 0.43% and Glencore (LON:GLEN) gained 0.49, while BHP Billiton (LON:BLT) and Anglo American (LON:AAL) rallied 1.13% and 1.46% respectively.
In the financial sector, stocks were mixed. Lloyds Banking (LON:LLOY) added 0.16% and HSBC Holdings (LON:HSBA) rose 0.26%, while Barclays (LON:BARC) eased 0.05% and the Royal Bank of Scotland (LON:RBS) slipped 0.11%.
Meanwhile, Reckitt Benckiser Group PLC (LON:RB) was one of the worst performers on the index for a second consecutive session, with shares down 1.25% after four of the household consumer group's top 10 executives announced their resignation on Monday, as the company continues to battle the lowest sales growth in its history.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.18% decline, S&P 500 futures signaled a 0.17% fall, while the Nasdaq 100 futures indicated a 0.11% loss.
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European stocks rise but geopolitical tensions linger; Dax up 0.48%
