Inmarsat, Kazakhmys trade down after major investors sell shares
By Simon Kennedy, MarketWatch
LONDON (MarketWatch) — European shares edged higher Tuesday, potentially bringing what’s been a six-session losing streak for the region to an end, as a surprise cut by the Bank of Japan added to expectations that central banks will continue to do all they can to support growth.
The Stoxx Europe 600 index (ST:SXXP 257.93, +0.19, +0.07%) moved up 0.1% to 258.00, having dropped around 2.4% over the previous six sessions.
The gain came after the Bank of Japan cut its policy interest rate and said it would take further easing measures, including a new temporary fund to buy various assets. See full story on Bank of Japan’s unexpected move.
U.S stock market futures also pointed to a higher start on Wall Street.
Bernard McAlinden, strategist at NCB Stockbrokers in Dublin, said Japan’s move is supportive for markets, along with previous comments from the U.S. Federal Reserve on further quantitative easing.
The European Central Bank and the Bank of England will also both make rate decisions on Thursday. Most members of the U.K. central bank’s rate-setting committee seem open to the idea of further easing measures, McAlinden noted.
However, he added that data and central-bank announcements are merely supportive for the major indexes, rather than the spark needed to touch off a significant rally.
Investors have “come to the view that the time isn’t right for equity markets to break higher,” he said.
At the regional level, the French CAC 40 index (FR:PX1 3,673, +23.26, +0.64%) , scored the biggest gains, adding 0.6% at 3,659.87, while the U.K.’s FTSE 100 index (UK:UKX 5,558, +1.90, +0.03%) rose 0.1% to 5,559.92 and the German DAX 30 index (DX:DAX 6,135, +0.84, +0.01%) tacked on 0.1% to stand at 6,138.78.
Airline stocks were some of the best performers in Europe, with auto stocks also mostly higher.
BMW (DE:BMW 48.92, +0.80, +1.66%) shares climbed 1.3% in Frankfurt as Renault (FR:RNO 35.90, +0.36, +1.00%) added 1% in Paris. Shares of British Airways (UK:BAY 244.80, +5.70, +2.38%) traded up 2.4% in London and Ryanair (IE:RY4B 3.88, +0.02, +0.44%) rose 1.2% in Dublin.
Holiday firm TUI Travel (UK:TT. 226.70, +9.90, +4.57%) lead the travel sector higher after reporting strong bookings and saying debt for the year would be below previous forecasts.
Mining stocks traded mixed. Anglo American (UK:AAL 2,565, +26.50, +1.04%) gained 1.2%, but Kazakhmys (UK:KAZ 1,383, -40.00, -2.81%) dropped 2.7% after the company’s chairman sold a big stake in the firm.
Satellite communications group Inmarsat (UK:ISAT 626.00, -29.00, -4.43%) also lost ground after an investor sold stock. The shares were down 4% in London following the decision by Harbinger Capital to off-load a 14% stake in the company.
Shares of Tesco (UK:TSCO 427.85, -2.50, -0.58%) initially gained after the world’s third-largest retailer by sales reported a stronger-than-expected profit for the first half of the year. But the stock later turned lower, trading down 0.7%, as relatively low growth in its home U.K. market caused some concern.
