LONDON (ShareCast) - -Netherlands, Spain complete bond auctions
-US housing data strong
-Markets rise

Most major European indices rose on Tuesday as fears over the Netherlands receded and US housing data surprised on the upside.

In the wake of the collapse of the Dutch coalition government yesterday, over austerity measures, there had been fears one of Europe’s hitherto most stable countries might become an addition to the “sick man” club.

Today Holland sold €1.995bn in bonds of 26 month and 24 year maturities. This suggested that the market was prepared to take on Dutch debt. The Prime Minister Mark Rutte also said he would try to build a new consensus for the budget cuts his country is under treaty obligations to implement.

Meanwhile in Spain, one of the EU countries most exposed to the debt crisis, the government sold €1.9bn in three and six month maturity bonds. The yields, or interest rates, on the securities rose from similar auctions in March but the total value of the sale was near the top end of Spain’s target.

In the US, sales of new homes in March reached an annualised rate of 328,000; this was better than the rate of 319,000 the market had been expecting.

COMPANIES

The best performing sectors on the benchmark Stoxx Europe 600 were automobiles and parts (+2%), construction and materials (+2%) and banks (+1.9).

Tire company Michelin gained 6% after reporting a 5.1% rise in first quarter revenues.

The other companies making news were mainly big Scandinavian players.

The biggest lender in Scandanavia, Nordea rose 3.5% after posting better than expected operating profits for the first three months of the year.

Swedish telecomms outfit Telia Sonera gained 6.8% after saying it will make over $3bn from selling shares in OAO MegaFon as the Russian company prepares for a London IPO.

MACROECONOMY

Italian hourly wages remained flat in March.

Swedish unemployment fell to 7.7% in March, well below the 8.0% expected by the market.

OTHER

Front month Brent crude futures were down 0.4% by 16:27 London time at the $118.23/barrel mark..

The euro/dollar had risen 0.35% by 16:38 in London to sit at $1.3163 per euro.

BS

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