Europe Shares Rally On Renewed Hopes For U.s. Debt Deal

Among notable movers in the index, shares of Rio Tinto PLC /quotes/zigman/155899 UK:RIO +3.75% /quotes/zigman/182541/quotes/nls/rio RIO +1.50% /quotes/zigman/176317 AU:RIO +2.51% gained 3.8% after the heavyweight miner said its iron-ore output rose to a new quarterly record . /quotes/zigman/68270/quotes/nls/aapl AAPL +0.66% named the luxury-goods firms Chief Executive Angela Ahrendts as senior vice president of retail and online stores. More broadly, investors in Europe welcomed developments in the fiscal negotiations in U.S., with the debt-ceiling looming and the government shutdown moving into Day 15. On the Senate floor on Monday, Senate Majority Leader Harry Reid said he was very optimistic about concluding deals this week to raise the debt limit as well as end the government shutdown. Sen. Mitch McConnell, the minority leader, said he shared Reids feeling that well get a result thats acceptable to both sides. YHOO | KO | JNJ | INTC | CSX | C /conga/story/misc/earnings_wall_threewide.html 282934 U.S. stocks rose on Monday , and futures also pointed to a higher open on Tuesday . Asia markets closed mostly higher . German data further provided investors with a reason to celebrate. The ZEW sentiment survey showed that the economic expectations indicator rose further above its long-term average in October, to 52.8 points from 49.6 points in Septemberbeating economists expectations for an unchanged reading. Germanys DAX 30 index /quotes/zigman/2380246 DX:DAX +0.72% jumped 0.7% to 8,786.00, on track for the highest close on record. The U.K.s FTSE 100 index /quotes/zigman/3173262 UK:UKX +0.82% picked up 0.9% to 6,562.99, while Frances CAC 40 index /quotes/zigman/3173214 FR:PX1 +0.56% rose 0.5% to 4,245.75. Morgan Cazenove lifted the equipment-rental company to overweight from neutral.

Energy leaders warn of blackouts across Europe

federal agencies and prevent a default on federal debt, sending world stocks higher. The plan under discussion would end a partial government shutdown and raise the debt ceiling by enough to cover the nation’s borrowing needs at least until mid-February 2014. Also brightening the mood, data showed on Tuesday that German analyst and investor sentiment improved unexpectedly in October on signs that the euro zone economy is over the worst of its downturn. The better mood was also visible in the derivatives market, with the Euro STOXX 50 put/call ratio falling back to 1.2, down from a 4-year high of 3.9 hit two weeks ago. The ratio, which is one of Europe’s widely-used gauges of investor sentiment, measures the trading volume of put options versus call options on the Euro STOXX 50. A ratio below 1 signals bullishness, while a ratio above 1.5 usually signals that investors are turning cautious, buying ‘puts’ as a hedge for their equity portfolios in case of a correction. “The consensus is bullish, everyone believes that a deal will be reached (in Washington), so it could already be priced in,” said Guillaume Dumans, co-head of research firm 2Bremans. “Deal or no deal, the size of the U.S. debt remains abyssal, and given the excess of optimism on the market right now, we could get a pull-back.” Mining shares featured among the top gainers on Tuesday, after Rio Tinto boosted its forecast copper output for 2013. Rio was up 3.7 percent, and BHP Billiton up 1.6 percent. Investors will keep a close eye on U.S.

Europe stocks rise on U.S. budget deal progress

Earnings Wall

) The end result, Conti noted, was that the environment was not seeing any benefit to subsidies meant to encourage the development of greener energy anyway a moot point for the EU which has carbon emission targets for energy companies in the EU as it aims to get 20 percent of its energy from renewable resources by 2020. The shale gas revolution in the U.S. has further upset European energy companies’ competitiveness and their profits, however. While energy prices have fallen in the U.S. due to the abundance of the cheap natural gas, in Europe, energy especially natural gas prices from Russia — have risen. Europe has subsequently turned to importing cheaper U.S. coal in a bid to offset higher energy prices that have caused controversy among consumers. Gerard Mestrallet, the chairman and chief executive officer of French utility GDF Suez, said the EU was now in a “paradoxical situation” as it turned to coal against a backdrop of greenhouse gas emissions targets. “The cheap gas in the U.S. is used to produce electricity and U.S. gas is eliminating coal.

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