This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

European Stocks Rise on Hopes for Stimulus Moves

Stocks in this article: RIO BHP

LONDON ( The Deal) -- European and Asian markets were generally in a cautiously positive mood Tuesday morning, boosted by a variety of factors, but all with the caveat that the good news generally arose from hoped-for government or central bank attempts to arrest underlying economic decline.

In Australia, the government abolished a controversial tax on iron ore and coal mining profits, just as it emerged that weaker demand for commodities helped the country's current account deficit almost to double in the second quarter. The central bank there also indicated it would maintain a loose monetary policy for now.

Watch the video below for a closer look at how Asian and European markets are faring in midday trading Tuesday:


WATCH: More market update videos on TheStreet TV

In Japan, unexpectedly high wage growth helped suggest the government's anti-deflationary efforts might be working after all. But analysts also argued that most other indicators had shown the opposite and it was partly also the fall in the value of the Japanese yen against the dollar that pushed the export stock focused Nikkei 225 up 1.24% to close at 15,668.6.

In the eurozone, the attention was squarely focused on Thursday's meeting of the European Central Bank and hopes of moves toward a policy of quantitative easing. Deflation fears in the eurozone were further stoked Tuesday by the issue of Eurostat figures showing industrial production prices had fallen in July both in the zone and in the wider European Union. That was led by the generally welcome fall in energy prices, but, following Monday's falls in manufacturing data, still leaves the market warily looking to policy makers for stimulus.

But the removal of Australia's mining tax boosted big mining companies such as Rio Tinto (RIO) and BHP Billiton (BHP)  which make up a big part of London's FTSE 100. Rio Tinto was up 0.93% at 3,261.0 pence, while BHP was up 1.34% at 1,930.5 pence. Glencore was up 1.63% at 367.75 pence.

The other big riser in London was the construction industry, which has undergone a recovery as the U.K. economy picks up and has also benefited from government housing policy stimulus, as well as infrastructure growth and commercial building. Construction output rose at its fastest pace for seven months last month, according the purchasing managers' index compiled by Markit Economics and CIPS. Mid-cap homebuilder Redrow announced a 92% increase in pretax profit, although its share price rose just 0.04% to 281 pence and its rival Barratt Developments was actually among the biggest fallers, down 1.17% at 364.5 pence.

The FTSE 100 was up 0.23% at 6,841 while in Paris the CAC40 was up 0.40% at 4,397, having breached the 4300 mark earlier in the session. In Frankfurt, the DAX was up 0.88% at 9,562 while in Moscow the MICEX Composite was up 0.19% at 1,397.

 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs