FXStreet (Mumbai) – European indices rebounded on Tuesday after the China-led ‘Black Monday’ and extended the opening gains as markets cheer the latest set of upbeat German fundamentals.
Economic growth in Germany was 0.4% in the second quarter, following the rise of 0.3% booked in the March quarter, confirming estimates. While the headline Ifo Business Climate Index rose to 108.3 during the eighth month of the year, above the 108 booked in July.
However, markets remain cautious and upside is likely to remain restricted as the sentiment in China remains weak as equity markets were down once again. The Chinese benchmark, the Shanghai composite closed the day below 3000 – key levels, recording a -7.63% loss on the day.
Germany’s DAX 30 index rises 2.62% at 9909 while the UK benchmark FTSE 100 advances 2.35% to trade at 6,037. Among the other indices, the French CAC 40 index is up nearly 3% and trades at 4511, and the pan-European Euro Stoxx 50 is also 3% higher at 3,164.
On the corporate earnings report, Copper miner Antofagasta said its net profit for the first six months of the year improved year-on-year, boosted by the sale of its water division, and confirmed its full-year financial outlook.
Contrarily, oil-field contractor Petrofac swung to net loss in the first half this year, but reported higher revenue from the year ago.
(Market News Provided by FXstreet)