Skip to Content
Market Update

European Stocks Give Up Early Gains

European markets slipped from early peaks and were trading mostly flat Tuesday as investors focussed on a few corporate earnings.

The FTSE 100 was flat and so was the DAX Frankfurt while the CAC 40 Paris edged up 0.3% at the time of writing.

Markets had opened in the positive territory after data showing improved growth in euro zone services sector boosted confidence.

But stocks scaled back those gains amid lingering concerns about the longevity of Fed's stimulus program. Data released yesterday in the U.S. showed that the country's services sector expanded at its fastest clip in five months during July, fuelling speculations the Federal Reserve would roll back its bond-purchase program soon in view of the improving economic conditions.

Some corporate results were also in focus during Tuesday's session.

Stocks on the Move

Among financials, Credit Agricole SA gained 1.3% after posting higher profit for the second quarter. BNP Paribas SA moved up 0.7%.

But other bankers were trading lower. German lender Deutsche Bank AG retreated around a percent while Commerzbank slipped 0.9%.

In London, Lloyds Banking Group Plc. was down 1.6% while Barclays Plc eased 0.3%.

More on earnings, German steel giant Salzgitter AG downgraded its earnings guidance, saying it expects a pretax loss of around 400 milllion euros in 2013 amid mounting losses on steel demand due to European debt crisis.

Germany's Munich Re AG tumbled 4.2% after the company said its full-year targets after net profit dropped 35% in the second quarter.

Precious metals producer Fresnillo Plc. slumped 7.3% after posting a 58.95% drop in pretax profit during the half year-end.

On the other side, Deutsche Post AG rose over 3% after lifting its full-year guidance to 2.75 billion euros to 3.0 billion euros.