International Markets Report
European shares advanced on Tuesday, with Germany’s Deutsche Bank hitting a twoweek high following recent steep losses and the world’s biggest education company Pearson gaining after encouraging comments by Morgan Stanley.
Pearson rose 5.6 percent, the top gainer in the pan-European STOXX 600 index, after Morgan Stanley said the company was unlikely to issue a profit warning, “meaning the shares could recover sharply on the Q3 results”.
Deutsche Bank rose 2.7 percent to a two-week high. Its shares had slumped to a record low on Friday before bouncing back on expectations of a swift deal with U.S. authorities over a multi-billion dollar penalty.
HSBC said that despite Deutsche Bank’s obvious operational shortcomings, fears over the bank’s solvency were overdone. However, HSBC cut its target price for the bank, forecasting challenging conditions for the banking environment.
The STOXX Europe 600 index was up 0.6 percent, while Germany’s DAX, which resumed trading after a holiday on Monday, was up 0.5 percent. Also In Market News Britain’s domestically-focused mid-cap FTSE 250 rose 1 percent to a record high, while the FTSE 100 index, dominated by international firms, gained 1.2 percent to 7,063 points - the first time since the mid-2015 it breached the 7,000 mark helped by a weaker sterling following the Brexit vote.
Japan’s Nikkei share average rose on Tuesday, with exporters up after the yen weakened against the dollar on data suggesting the U.S. manufacturing sector grew better than expected in September. The Nikkei gained 0.8 percent to 16,735.65, its highest closing level since the 23 September. The broader Topix advanced 0.7 percent to 1,340.21, while the JPX-Nikkei Index 400 rose 0.7 percent to 11,995.32.
Iran, fresh from an OPEC meeting where it won significant concessions from regional rival Saudi Arabia, accelerated the rejuvenation of its sanctions-ravaged energy industry on Tuesday when the state producer signed a new-model oil investment contract.