A stock exchange in Germany.
Torsten Silz | AFP | Getty Images
LONDON — European stocks traded higher Tuesday, buoyed by China’s central bank monetary stimulus measures, and brushing off concerns over Europe’s growth outlook.
The pan-European Stoxx 600 index was 0.8% higher in early trades, with mining, technology and household goods the best performing sectors and only telecoms and utilities in negative territory.
Positive sentiment in Europe comes after Asia-Pacific markets climbed overnight following Beijing’s announcement of a range of policy easing measures in a bid to stimulate the economy.
European stocks closed higher Monday despite German and French preliminary composite PMI data, a measure of business activity in the manufacturing and services sector, showing declines in September in both of Europe’s largest economies, as well as the wider euro zone area.
Market participants are also keeping an eye on shares of Commerzbank Tuesday after the stock fell around 5.7% Monday after German Chancellor Olaf Scholz criticized what he described as UniCredit’s “hostile” and “unfriendly” move on the bank, Reuters reported. On Tuesday, shares of Commerzbank were trading 2.4% higher.
Scholz’s comments came shortly after Italy’s UniCredit announced it had increased its stake in the German lender to around 21% and submitted a request to boost the holding to up to 29.9%, signaling a takeover bid might be on the cards.
U.S. stock futures were little changed Monday after the S&P 500 and Dow Jones Industrial Average posted new record closes.
The gains were modest but appeared to be a continuation of last week’s rally after the U.S. Federal Reserve cut interest rates by half a percentage point. The fed funds rate now sits at a range of 4.75% to 5.00%