European Stocks Up Ahead of Key Data
October 25 2016 - 4:50AM
Dow Jones News
European stock markets opened higher Tuesday ahead of economic
data this week that is likely to influence policy of the world's
main central banks.
The Stoxx Europe 600 rose 0.3% in early trading, led by the
basic resources and the telecommunications sectors. In the U.S.,
futures markets pointed to a 0.1% opening gain for the S&P
500.
Among the main risers in early European trade was France's
biggest phone carrier, Orange SA, which gained 3.7% after reporting
an 0.4% increase in sales to €10.32 billion ($11.23 billion) in the
third quarter.
Shares in troubled Italian lender Banca Monte dei Paschi di
Siena SpA continued to power ahead and rose more than 8% on news
that it will slash employee costs and reduce branches.
Markets have steadied this week, amid deal talks and
better-than-expected earnings coming from the U.S. Expectations are
now high that U.S. economic data for the third quarter, set to be
released Friday, will paint a rosy picture of the world's largest
economy.
As a result, investors now see a 74% chance of the U.S. Federal
Reserve nudging up rates by December. The dollar has risen against
other major currencies, buoyed by expectations of tighter monetary
policy.
On Thursday, U.K. officials will provide a first glimpse at
post-Brexit Britain by releasing gross domestic product figures for
the third quarter. Economists polled by The Wall Street Journal
expect the economy to have expanded 0.4% from 0.6% in the previous
quarter.
Strong data could lead markets to expect less monetary stimulus
from the Bank of England.
Asian equity markets were mixed on Tuesday, dragged down by
disappointing South Korean GDP data, which drove the Kospi index to
edge down 0.5%. Meanwhile, a weaker yen boosted the Japanese Nikkei
225, which rose 0.8%.
Write to Jon Sindreu at jon.sindreu@wsj.com
(END) Dow Jones Newswires
October 25, 2016 04:35 ET (08:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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