European stocks markets recover

Around 1015 GMT, London's benchmark FTSE 100 was up 0.5 percent compared with the close on Monday.

European stocks markets recover

World Bulletin / News Desk

European stock markets recovered Tuesday on easing political unrest in Germany, but shares in Swiss miner Glencore melted on news of a US legal probe over its global activities.

In the eurozone, Frankfurt's DAX 30 jumped 1.2 percent, the Paris CAC 40 won 1.0 percent and Madrid's IBEX 35 grew 1.3 percent.

The euro climbed to $1.1662.

Oil prices rebounded, with New York's main contract reaching the highest level since November 2014 at $74.90 per barrel.

"European markets are in rebound mode... as an apparent resolution to the German political impasse has helped dispel much of the trade war anxiety that was evident throughout Asia," noted Joshua Mahony, market analyst at IG trading group.

"Unfortunately, while the likes of the DAX, IBEX and CAC are leading the way, the FTSE 100 is struggling to make much headway, with gains in the top UK index stemmed by... Glencore."

German Chancellor Angela Merkel has survived a bruising challenge to her authority with a compromise deal on immigration.

In high-stakes crisis talks overnight, Merkel had put to rest a dangerous row with her hardline Interior Minister Horst Seehofer that had threatened the survival of her fragile coalition government.

However criticism from Vienna and her junior coalition partner, the Social Democrats, threatened to throw a spanner in the works just as Germany hoped to emerge from a crippling weeks-long political standstill.

"News that Merkel is safe and the fragile German coalition will live to see another day has encouraged traders back into the Dax, which had been suffering at the hands of investor anxiety about new snap elections," said London Capital Group analyst Jasper Lawler.

Elsewhere on Tuesday, shares in Glencore were down a hefty 13 percent at 304 pence after the company said it was being investigated by US authorities over its business in Nigeria, Venezuela and the Democratic Republic of Congo.

Earlier, Asian stock markets ended mixed, with investors awaiting US-China tariff announcements in the latest trade war developments.

The yuan extended losses and has fallen around eight percent since the end of March to an 11-month low, as China struggles to cap a debt mountain while supporting growth.

Analysts dismissed some claims that authorities are allowing the Chinese currency to weaken to offset the impact of any tariffs.

"We have already seen the impact on Chinese investors' anxiety over a weaker currency and subsequent capital outflow in 2015-16," said Tai Hui, JP Morgan Asset Management chief market strategist for Asia-Pacific.

"This is not a can of worms that Beijing wants to open again."

Oil prices rallied, a day after taking a hit when US President Donald Trump said Saudi Arabia had agreed to his request to ramp up crude output.

"The market remains supported by a production outage in Libya and... data which suggest US supplies are running very tight," said Stephen Innes, head of Asia-Pacific trade at OANDA.

Güncelleme Tarihi: 03 Temmuz 2018, 14:36