By Barbara Kollmeyer
MADRID (MarketWatch) -- European stock markets were largely
positive in afternoon trading on Tuesday, with oil major BP
pleasing investors with results, while in Spain, BBVA fell on news
of a deal and capital raising.
The Stoxx Europe 600 index rose 0.3% to 267.30.
U.S. stock futures were higher, helping to underpin gains for
Europe, as Wall Street braced for midterm elections and awaited the
outcome of the two-day Federal Open Market Committee meeting that
begins on Tuesday. A decision from the Fed is due Wednesday, with
wide expectations it will announce another round of quantitative
easing.
Gains for Europe were led by London, with oil and mining groups
higher and several companies reporting results. Heavyweight oil
giant BP PLC (BP) rose 1.3%. The group said third-quarter net
profit fell 67% owing to a further $7.7 billion of pretax charges
related to the oil spill in the Gulf of Mexico. Adjusted underlying
profit, however, topped consensus forecasts.
Analysts at Societe Generale, who rate BP a buy, say the
underlying numbers at BP look "unaffected" by the spill-related
disturbances. "Adjusted for divestments and spill costs, BP's
performance remains strong," said the analysts in a note to
investors.
BG Group PLC gained 2.6%, after the company reported a higher
third-quarter profit and announced an upgrade to its Brazilian
reserves.
Tullow Oil PLC rose 3.2% and Royal Dutch Shell PLC (RDSA) (RDSB)
added 2.6%, with oil gains helping the U.K. FTSE 100 index advance
1.2% to 5,764.39.
Also in London, shares of Imperial Tobacco Group PLC rose 3%
with market viewing positively news that the group's 2010 fiscal
net income nearly doubled on 6.2% higher revenue.
In the mining sector, Kazakhmys PLC and Fresnillo PLC each rose
1.5%. Precious metals prices were higher across the board on
Tuesday.
On the downside in London, shares of Lloyds Banking Group PLC
(LYG) fell 2% after a third-quarter update. The company said it's
on track for underlying profit targets for 2010, but didn't give
specific figures.
In Germany, the DAX 30 index rose 0.7% to 6,651.50, with gains
led by health-care company Fresenius SE , up 3.2% after reporting a
10% gain in net income for the third quarter and lifting its 2010
expectations for net income.
Retailer Metro AG , came off earlier gains, slipping 1%. The
company doubled its net profit for the third quarter, beating
forecasts, and said it expects 2010 sales will exceed the prior
year's levles but fall short of its medium-term targets.
Shares of gases and engineering firm Linde AG fell 1.7%, even as
the company reported a 50% increase in third-quarter profit,
beating forecasts, and reaffirmed its full-year outlook.
In Paris, the CAC 40 index rose 0.7% to 3,867.97, with shares of
Total SA (TOT) up 1.4%, following oil stocks broadly higher.
Shares of auto-related companies led the downside. PSA Peugeot
Citroen fell 1% and Renault SA fell 1.7%.
In an interview with French radio, the head of Renault's sales
in France, Bernard Cambier, reportedly said the domestic auto
market fell 19% in October, after an 8.2% fall in September, Dow
Jones Newswires reported. He added that Renault sees the overall
market to be down 5% against 2009, which is higher from a 10% fall
it was forecasting earlier this year.
In Spain, the IBEX 35 index recovered from earlier losses to
trade up 0.3% to 10,682.40, as shares of heavyweight BBVA (BBVA)
pared losses. Those shares fell 1.1% as the company said it would
pay $5.84 billion for a 24.9% stake in Turkiye Garanti Bankasi
(GARAN.IS).
Analysts fretted as the company also said it would seek to raise
5 billion ($6.98 billion) from existing shareholders.
Economic data showed that the Markit final euro-zone
manufacturing purchasing managers index rose to 54.6 in October,
above the earlier flash estimate of 54.1.
In Asia hours a couple of central banks took the spotlight. The
Reserve Bank of Australia raised its benchmark rate by 25 basis
points to 4.75%, triggering gains for the Australian dollar and
stocks. The Reserve Bank of India lifted lending and borrowing
rates by a quarter-point, in a move widely expected by
economists.