Tuesday July 7, 12:27 PM
European stocks see modest rebound
LONDON (AFP) - Europe's main stock markets rebounded slightly on Tuesday, with London supported by recovering mining shares, while banks and autos fared well in Frankfurt.
In late morning European trading, London's FTSE 100 index of leading shares was up 0.91 percent at 4,233.21 points.
Frankfurt's DAX 30 (Xetra: news) gained 0.58 percent to 4,678.90 points and the Paris CAC 40 increased 0.56 percent to 3,099.44 nearing the half-way stage.
The DJ Euro Stoxx 50 index of leading eurozone shares grew 0.66 percent to 2,359.46 points.
On the foreign exchange market, the European single currency was flat at 1.3984 dollars.
Europe's leading stock markets had slid on Monday in gloomy trading as investors reeled from grim US jobs data and looked ahead to a wave of company earnings results, dealers said.
Japanese share prices closed down 0.34 percent on Tuesday as investors took to the sidelines ahead of upcoming US corporate results.
Wall Street meanwhile struggled to a mixed finish overnight, as a better-than-expected survey of the US services sector helped offset pessimism from last week's jobs report. US nonfarm payrolls fell by 467,000 in June.
"It is a reversal of fortune that is lifting the FTSE up today (Tuesday), with a bounce-back by the mining sector helping to lift sentiment across the market," said IG Index trader Philip Gillet.
"However, tempering the rise has been the latest UK factory production figures, showing a drop in May -- doing little to ease investors' fears that economic recovery is still some way away.
"Looking ahead to the US market open, we are expecting a flat start for the Dow Jones (news) index, with little change from last night's close.
"There is little of note on the economic calendar, suggesting a directionless day ahead, and it would not be surprising to see stock markets edge lower as traders choose to stay on the sidelines before the earnings season gets into full swing," added Gillet.
In London on Monday, mining stocks bounced higher on recovering metals prices. Rio Tinto (LSE: RIO.L - news) won 3.74 percent to 1,955.5 pence, Xstrata (LSE: XTA.L - news) jumped 3.55 percent to 627.5 pence and Anglo American (LSE: AAL.L - news) climbed 3.53 percent to 1,686 pence. In Frankfurt, BMW (Xetra: 519000 - news) advanced 1.19 percent to 25.93 euros as the German carmaker said slumping sales had eased in June.
BMW said it delivered 127,500 vehicles worldwide, a decrease of 12.7 percent from the same month a year earlier, making June the company's best month this year.
"There are early signs of a slight recovery on automobile markets," said BMW sales director Ian Robertson. "But it will take time to see if the trend is sustainable."
The DAX's top gainer was Commerzbank (Xetra: 803200 - news) , which rallied 5.32 percent to 5.04 euros.
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