(RTTNews) - European stocks may open on a cautious note Tuesday, as investors may pause for some profit taking following recent gains. However, underlying sentiment may remain positive due to strong global cues amid mounting optimism over third-quarter earnings and rising commodity prices.

The Dow futures are currently up by 33 points as both Texas Instruments and Apple Inc. posted better-than-expected results after Wall Street closed overnight. Buoyed by the positive sentiment across financial markets and a weaker dollar, crude oil price rose to year-high towards $80 a barrel in Asian trading.

On the economic front, big ticket M&A activity and recent easing of the availability of credit coupled with lower interest rates have spurred-on buyers back into the property deals market., accountants and business advisers Grant Thornton U.K LLP said in a report on Monday. M&A deals in the U.K property sector jumped to a yearly high in the third quarter, with deal values reaching more than five times those seen in the same quarter last year.

Germany’s Federal Statistical Office announced that the producer price index or PPI dropped 7.6% year-over-year in September, compared to the 6.9% fall in the previous month. Economists expected a decline of 7.1%. A year ago, producer prices were up 7.9%.

On Wall Street, stocks rallied sharply overnight on better-than-expected earnings reports and economic optimism. The decline in homebuilder confidence did hurt sentiment to an extent but the impact was not significant. The major averages ended up nearly a percent each, reaching their best closing levels of the year.

In corporate news, the U.S. Food and Drug Administration approved Votrient (pazopanib), an oral medication for advanced form of Kidney Cancer manufactured by GlaxoSmithKline Plc.

Koninklijke Ahold N.V. announced third quarter consolidated net sales of EUR 6.0 billion, up 4.3% from last year.

MPS Group, Inc. announced definitive deal to be acquired by Switzerland’s Adecco Group for $13.80 per common share in a cash transaction valued at about $1.3 billion.

Chemical manufacturing giant BASF SE agreed to pay nearly $400,000 in penalties and to repair leaking equipment at its Beaumont facility and others across the country.

Xstrata Plc announced that Xstrata alloys increased ferrochrome capacity utilization to about 85% by the end of the third quarter from 60% in early July, which is in response to the improving demand in the second half of the year.

Rathbone Brothers Plc said it has agreed terms with Lloyds Banking Group or LBG for the transfer to Rathbones of elements of Lloyds TSB’s legacy discretionary investment management assets that are closed to new business and HBOS’ discretionary investment management activities.

Autonomy Corp. Plc reported third-quarter net profit of US$36.77 million or US$0.15 per share, compared to US$33.44 million or US$0.15 per share in the year-ago quarter.

Hargreaves Lansdown Plc said its first-quarter operating revenue was �36.1 million, 13% higher than �32 million in the year-ago period.

The European markets rose Monday on growing optimism about the third quarter earnings season that will be in full swing this week.

The FTSEurofirst 300 index of pan-European blue chips closed 1.67% higher, its highest close since October 3, 2008, while the narrower DJ Stoxx 50 index rose 1.87%. Around Europe, the U.K.’s FTSE 100 index rose 1.12%, France’s CAC 40 index advanced 1.69% and Germany’s DAX index added 1.90%.

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Posted in Categories: Eurozone, Releases, Stocks, Switzerland, USA.

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