(MENAFN– ecpulse)
European stocks were mostly higher early Tuesday as China`s stimulus hopes overshadowed worse-than-expected drop in German business confidence.
Although cautious sentiment dominates the world equity markets, Europe opened higher rebounding from yesterday`s choppy trade and brushing off the continued tension over Russia`s annexation of Crimea and a run of disappointing economic data from the US and China.
As of 05:01 a.m. ET, the Stoxx Europe 600 was up 0.54% at 326.15, with 00 driving the rally. The European-pan benchmark has settled lower at 324.39 yesterday.
- London`s FTSE 100 was up 0.86% at 6,576.30
- Paris`s CAC 40 up 0.73% at 4,307.71
- Frankfurt`s DAX 30 was up 0.72% at 9,254.78
German business confidence, based on a survey of 7,000 executives, dropped for the first time in five months in March amid worries from EU sanctions on Russia and low inflation woes in the euro area.
The business climate index climbed to 1107 in March, from the highest since July 2011 of 111.3 recorded in February, coming below forecast of 110.9, the Ifo institute said on Monday.
Today`s rally has lost a bit of some steam after Ifo survey suggested that German business sentiment has faltered slightly in March. however, stocks extended gaisn shirtly after the german disappoitment.
The rebound from Monday`s slide was apparenlty buoyed by speculation that China will hint fresh stimulus measures to boost the country`s economic recovery after Markit/HSBC flash PMI signaled a contraction in Chinese factory activity for the third month in a row.
Separately, UK inflation dropped, as expected, to its lowest level in more than four years in February, at 1.7% year-on-year from 1.9% in Janaury dipping further below the Bank of England`s 2% target.
Gains, however, remain evident and hopes of additional stimulus from Beijing is so far keeping the European bourses on a positive note before the upcoming releases from the world`s largest economy.
The US housing market has been soft and surpirse strength in today`s new-home sales repot would give a lift to the economic outlook.
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