European shares stay near highs as Spanish sell-off eases
Date | 03-10-2017 - 03:17 PM
Article Type | Stock Markets
Region | Europe
MILAN (Reuters) - European shares hovered around 3-month highs in early deals on Tuesday as a sell-off in Spanish stocks eased and financials gained following another record-breaking session at Wall Street.
The pan-European STOXX 600 (STOXX) index was up 0.1 percent by 0714 GMT, while Madrid's blue chip IBEX (IBEX) also gained 0.1 percent, recovering from a 1.2 percent fall on Monday as Madrid seeks ways to respond to Catalonia secessionist crisis.
Catalonia-based banks Sabadell (MC:SABE) and Caixa (MC:CABK) also inched up, having been severely hit by worries surrounding Spain's worst constitutional crisis in decades.
But Spanish utility Iberdrola (MC:IBE) fell 1.1 percent after JP Morgan downgraded the stock to neutral saying political uncertainty added to a list of headwinds.
Financials and materials stocks provided the biggest boost to the STOXX, offsetting weaker consumer and healthcare stocks.
Top gainer on the pan-European benchmark was Ferguson (L:FERG), up 3 percent after the company reported a rise in trading profit and announced a share buy back plan.
While Germany was closed for holiday, UK's FTSE (FTSE) was down 0.1 percent led lower by a fall of more than 2 percent in Bae Systems (L:BAES) following a downgrade to hold at Berernberg.