Continued unease over the euro-zone’s debt crisis and Spain’s bailout package made for another choppy session for Europe stocks on Tuesday, which tried to stabilize after a volatile prior session.
The Stoxx Europe 600 index (XX:SXXP) +0.07% bounced higher then shifted back to a gain of 0.2% to 242.32. The index was largely flat in the prior session. All major indexes were rising slightly and slipping back.
Rising bond yields ate away an early lead for Spain’s IBEX 35 index (XX:IBEX) -0.18% , down 0.3% to 6,495.10.
Shares of heavyweight Telefonica SA (ES:TEF) +0.47% TEF -2.04% rose 1%.
Banking majors Banco Santander SA (ES:SAN) -0.89% STD -3.11% and BBVA SA (ES:BBVA) -0.82% BBVA -2.17% were flat. Fitch Ratings downgraded the two lenders by two notches each the prior day, as a follow-up to the ratings firm’s downgrade of Spain last week.
According to Market Watch, Spanish shares led volatile action the prior day. The IBEX 35 shed all of a nearly 6% gain at one point as investors expressed disappointment over a plan for the European Union to loan as much as €100 billion ($125 billion) to the troubled banking sector.
Yields on Spanish and Italian 10-year were moving quickly higher, following dramatic moves upward the prior day. Those for Spain (ES:10YR_ESP) +2.36% (ES:10YR_ESP) +2.36% rose 11 basis points to 6.67%, while those for Italy rose 10.7 basis points to 6.15%.
Food and beverage stocks provided support for the main Stoxx 600. Nestle SANSRGY -0.81% (CH:NESN) +0.73% was up 0.6%, As well, drug stocks underpinned the index, with Roche Holding AG (CH:ROG) +0.72% RHHBY -0.45% up 1.1%.
Amlin PLC (UK:AML) +3.37% was the biggest gainer for the Stoxx 600, up 4%, after the insurance and reinsurance group was upgraded to buy from hold at Deutsche Bank.
Julius Baer Gruppe AG (CH:BAER) +1.99% rose 3% after UBS lifted shares of the private bank to buy from neutral.
Among other indexes, the French CAC 40 index (FR:PX1) +0.26% rose 0.3% to 3,052.83, led by a 1.2% rise for dairy group Danone SA (FR:BN) +1.07% .
The German DAX 30 index (DX:DAX) +0.44% rose 0.3% to 6,157.23. It was led by a 2% rise for E.On AG (DE:EOAN) +1.08% after the utility was upgraded to buy from neutral at UBS. Also providing support: Drugmaker Bayer AG (DE:BAYN) +0.97% rose 1.4%.
British American Tobacco PLC (UK:BATS) +1.74% rose 1.3% and Unilever PLC (UK:ULVR) +1.33% UL -0.41% added 1.4%, helping lift the FTSE 100 index (UK:UKX) +0.05% 0.2% to 5,441.84.
TomTom NV (NL:TOM2) +14.30% shares leaped 14% as the Amsterdam provider of navigation technology announced a mapping-data deal with Apple Inc. AAPL -1.58%.
