European Stocks Close Higher Supported By US Stocks
London – European Stock closed higher on Tuesday, supported by the positive performance of the US Stocks in early trading, but Stocks of the two Germanies Energy RWE and E.ON fell after a report they need to set aside more money to close the power plants nuclear-powered.
And trading volumes remained thin with investors reluctant to do big bets before deciding the Federal Reserve (Fed) on Thursday whether it will raise interest rates in the United States for the first time since 2006.
RWE shares fell 3.3 percent and E.ON’s shares fell 6.2 percent after it said site Spiegel Online mail they lacked to 30 billion euros (34 billion dollars) of the funds they must set aside to build a site for safe disposal of nuclear waste in the framework of shedding Germany for the use of nuclear energy.
E.ON said that the nuclear provisions insufficient.
The index rose FTSEurofirst 300 of top European shares 0.85 percent to close at 1405.49 points, supported by the rise of the US stocks.
Although the index increases more than five percent from its level low that it reached late last month, but it remains a low of about 14 percent from its peak recorded two weeks ago, which is mainly due to concerns about the pace of economic growth in China and the prospect of raising US interest rates.
The auto sector index rose 1.4 percent after data showed a rise in new car registrations in Europe 11.5 percent last month, with the growing recovery in the regional market.
And turning Europe Stoxx 600 index for basic resources sector to climb after the biggest losers in Europe.
The shares recovered Glencore mining and commodities from early losses supported by the recovery of copper. The stock fell nearly eight percent in early trading after going down coal prices from levels not seen since the global financial crisis in 2008-2009 due to slowing demand.