EU STOCKS around two-month high

European stock markets struggled for direction on Tuesday, with Credit Agricole SA rallying after a well-received earnings report, while Salzgitter AG slumped after a profit warning.

The Stoxx Europe 600 index  was slightly higher at 304.79, setting the benchmark on track for a seventh straight day of gains. On Monday it closed at the highest level since late May.

Among country-specific indexes, the U.K.’s FTSE 100 index dropped 0.3% to 6,601.12. The UK manufacturing data surprised investors. After the recent improvement in the key Services PMI, the manufacturing and industrial production exceeded the median in June, advancing at an annual rate of 2.0% and 1.2%, respectively, leaving behind May’s contraction.

Ahead in the day the NIESR GDP Estimate for the three months ended in July will be in the limelight, ahead of tomorrow’s BoE Quarterly Inflation Report.

Data released earlier showed UK Halifax House Prices grew 0.9% in July, following a 0.7% increase the previous month. Analysts expected less growth of 0.5%.

On an annual basis Halifax House Prices climbed 4.6% in July, after rising 3.7% in June and above consensus of +4.3%.

Germany’s DAX 30 index  fell 0.2% to 8,385.53, while France’s CAC 40 index  was slightly higher at 4,050.79.

Among notable movers in the pan-European index, shares of Crédit Agricole gained 4.3% after second-quarter profit surged to 696 million euros ($922.7 million), up from €56 million a year earlier.

German TV operator Sky Deutschland AG climbed 5.9% after it narrowed its net loss in the second quarter and confirmed its full-year outlook.

On a more downbeat note, shares of Salzgitter slumped 6.7% after the steelmaker late Monday cut its profit guidance for the second time this year.

Shares of GlaxoSmithKline PLC dropped 1.1% after Citigroup cut the drug maker to neutral from buy, saying the stock seems fairly valued in the near term after a period of outperforming the sector.

HSBC Holdings PLC lost 1.2% after Deutsche Bank cut the bank to hold from buy on the back of a disappointing earnings result out on Monday.

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