European stocks climb on copper bounce, Greek news

Europe's main stock markets rose on Tuesday, with miners boosted by high copper prices and as investors welcomed Greece's return to international debt markets, dealers said.

London's commodities-heavy FTSE 100 index forged higher as copper struck a five-month peak on keen demand and the flagging dollar.

Shares in resources giant Anglo American rose six percent and Antofagasta added more than seven percent, while BHP Billiton picked up four percent.

"Equities are nicely higher," noted Mike van Dulken, head of research at Accendo, saying strong company results from the US and a higher oil price added to positive sentiment.

In the eurozone, Frankfurt and Paris stocks garnered gains on increasing confidence over Greece, traders said.

Greece broke a three-year dry spell with a successful return to the debt markets on Tuesday, a symbolic victory for the beleaguered eurozone nation.

It even managed to borrow at cheaper rates than in 2014, the last time it tapped the international bond market, HSBC, lead manager for the operation, told AFP.

The Greek treasury sold three billion euros ($3.5 billion) worth of five-year bonds at a rate of 4.625 percent, said Frederic Gabizon, head of European public sector debt at HSBC.

"Eurozone confidence is rising as the Greeks return to the debt market," said IG analyst Joshua Mahony.

 

- 'Stronger appetite' -

 

"There is now stronger market appetite for Greek risk," Barclays analyst Antonio Garcia Pascual said in a note to clients.

German shares received a further boost from an Ifo think-tank report saying that confidence among German business leaders hit a "euphoric" all-time high in July.

Wall Street also showed healthy gains approaching midday in New York as strong earnings, notably from Caterpillar and McDonald's, boosted the Dow index.

The Nasdaq, however, slipped on disappointing figures from Google parent Alphabet.

Elsewhere Tuesday, Asian stock markets struggled as the dollar resumed its downward drift, with the focus turning to the Federal Reserve's two-day policy meeting that concludes Wednesday.

Thrown into the mix is the ongoing drama surrounding US President Donald Trump's administration, with his son-in-law and top adviser Jared Kushner giving testimony Monday in which he denied collusion with Russia to sway last November's election result.

In foreign exchange Tuesday, the euro was at its highest level since 2015 against the dollar.

- Oil rebounds -

 

Oil prices rose more than a dollar after global crude producers, meeting in Russia Monday, called for stricter adherence to a agreement to cut output.

The Saudi-led OPEC global oil cartel, along with Russia and other large producers, met in the northwestern city of Saint Petersburg to assess the results of their November agreement to cut output in the hope of boosting prices.

But Jameel Ahmad, a market analyst at FXTM, wondered whether hope for further oil output cuts was really justified.

"While the Oil markets are attempting to maintain gains following the latest OPEC meeting, I remain unconvinced whether the outcome to the gathering actually means anything for the price of oil in the long run," he said.

Instead, he said, producers were expressing hope that current cuts would eventually deliver a re-balancing of the oil market.

 

 - Key figures around 1540 GMT - 

 

London - FTSE 100: UP 0.8 percent at 7,434.82 points (close)

Frankfurt - DAX 30: UP 0.5 percent at 12,264.31 (close)

Paris - CAC 40: UP 0.7 percent at 5,161.08 (close)

EURO STOXX 50: UP 0.6 percent at 3,473.54

New York - DOW: UP 0.5 percent at 21,625.20 

Euro/dollar: UP at $1.1654 from $1.1641 at 2100 GMT Monday

Pound/dollar: UP at $1.3043 from $1.3028

Dollar/yen: UP at 111.59 yen from 111.12  

Tokyo - Nikkei 225: DOWN 0.1 percent at 19,955.20 (close)

Hong Kong - Hang Seng: FLAT at 26,852.05 (close)

Shanghai - Composite: DOWN 0.2 percent at 3,243.69 (close)

Oil - Brent North Sea: UP $1.25 at $50.07 per barrel

Oil - West Texas Intermediate: UP $1.37 at $47.71

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Source: AFP