European stocks climb, Dow flirts with 22,000

3 August, 2017 12:00 AM printer

LONDON: European stock markets rose solidly Tuesday on positive eurozone economic data and strong company profits, while on Wall Street the Dow closed in on the 22,000 level.

London's FTSE 100 rose 0.7 percent, with engines-maker Rolls-Royce shooting over 10 percent higher after exceeding expectations by posting a half-year pre-tax profit of œ1.94 billion ($2.57 billion), traders said, reports AFP.

Rolls topped the FTSE with a gain of 10.3 percent to 979 pence.

Energy giant BP, which announced a return to profit, jumped 2.4 percent.

Eurozone stock markets also rose, with Paris up 0.7 percent and Frankfurt jumping 1.1 percent percent higher as data showed growth in the bloc accelerating slightly in the second quarter to 0.6 percent.

The fresh data will reinforce hopes that despite the uncertainty and turbulence of Brexit, the eurozone is emerging from the worst of the financial crisis that began in 2008.

The growth numbers come a day after figures showed unemployment in the eurozone had dropped to its lowest level in eight years.

Despite the slew of positive data, market gains were relatively subdued as investors factored in the increased possibility of the ECB tightening monetary policy, which has sent the euro higher.

A stronger currency "is likely to make a significant dent into the revenues of those companies which generate a lot of their income from exports", said CMC Markets analyst Michael Hewson.

Despite its recent gains amid political turmoil in the White House, the euro retreated slightly against the dollar on Tuesday.