European stocks move higher on Brexit pressures

Bourses in Europe were higher early Tuesday ahead of the Federal Reserve’s meeting later this week.

The pan-European Stoxx 600 edged 0.3 percent higher with most sectors trading in positive territory.

Media stocks were among the best performers in early deals. Cable operator Altice USA will be valued at up to $22 billion after announcing details of its stock market listing. Shares of the Netherlands-based Altice NV were slightly higher in early trading.

Health care also moved higher after some rating upgrades. Morgan Stanley said it is confident that Luxottica and Essilor will create a global eyewear powerhouse. The later rose 1.2 percent in early trade.

The British outsourcing group Capita said Tuesday it intends to grow profitability and secure further contracts in the second half of the year. The announcement took the stock to the top of the European benchmark, up by 13 percent.

The LSE Group also rose 3.4 percent after making a bullish prediction for its outlook between now and 2019 despite Brexit talks and collapse of a merger with its German rival.

Shares of Petrofac also increased 3.4 percent in early deals. It announced a five-year contract with Kuwait Oil Company worth $35 million.

On the other hand, Merlin dropped 3 percent after stating that recent terrorist events in Manchester and London could hit its tourist attractions.

Brexit and data

Prime Minister Theresa May is set to hold talks with DUP members as she looks for a deal that will allow her to obtain a parliament majority. Meanwhile, she told lawmakers she would continue as prime minister for as long as they want.

Nonetheless, Brussels is urging the U.K. to sort out its politics fast to allow Brexit negotiations to start rapidly.

“My preoccupation is that time is passing, it is passing quicker than anyone believes because the subjects we have to deal with are extraordinarily complex,” the EU’s chief Brexit negotiator told the Financial Times.

In corporate news, Allied Irish Banks intends to raise up to $3.7 billion when it sells a 25 percent stake on the Dublin and London stock exchange.

Oil prices moved higher on Tuesday after statements from Saudi Arabia that it was making significant supply cuts. On Tuesday’s calendar is the release of May core inflation figures in the U.K. at 9.30 a.m. London time and the euro zone ZEW economic sentiment index at 10 a.m. London time.

Source: CNBC