Markets

European markets move higher amid metal gains; Provident Financial tumbles 58%

The pan-European Stoxx 600 was up 0.52 percent during early morning deals with almost all sectors and major bourses in positive territory.

Basic resources stocks led the gains on Tuesday, up more than 1 percent on strong metal prices and earnings news. Copper edged towards its highest peak in almost three years in the previous session while zinc hovered near decade-highs. Europe’s mining giant, Antofagasta, surged towards the top of the benchmark after it reported surging profits in the first half of the year. Its shares were more than 3 percent higher.

Looking at individual stocks, Britain’s second-biggest housebuilder, Persimmon, reported profits for the first six months of the year rose 30 percent when compared to the same period a year earlier. However, the firm stressed it would remain cautious with land purchases amid uncertainty around Brexit. Its shares were around 3 percent higher on the news.

Provident Financial shares plummeted more than 58 percent on Tuesday after it announced its CEO Peter Crook was leaving the firm while the company said it is unlikely to be able to pay a dividend this year. The British subprime lender also issued its second profit warning in two months.

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