Europe open: Stocks on the front foot; Credit Suisse up on cost-cutting plans

European stocks rose in early trade, with Credit Suisse among the gainers as investors welcomed the bank’s latest cost-cutting efforts.

At 0900 GMT, the benchmark Stoxx Europe 600 index was up 0.5%, Germany’s DAX was 0.9% higher and France’s CAC 40 was up 0.7%.

At the same time, oil prices were lower as investors eyed the release of US crude oil inventories later in the session amid ongoing concerns about oversupply. West Texas Intermediate and Brent crude were down 0.9% to $41.06 a barrel and $41.41, respectively.

“European markets continue to show remarkable resilience in the face of yesterday's terrorist attacks, moving higher in early trade and continuing their defiant stance from yesterday which saw markets shrug off their early flight to safety and finish in positive territory,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor.

“The last six weeks have seen commodity markets stage a remarkable recovery and central banks have stepped up their support - but investors need to start asking difficult questions about whether the global macro outlook has changed so much in such a short space of time to support further upside.”

O’Keeffe noted that the US VIX index, which measures the cost of downside protection for equity portfolios, has dropped to its lowest levels since last summer's sharp market decline, slipping to just 13.8 in trading Tuesday after rising to a high of over 30 in early February.

On Tuesday, European equities shook off a weak start to end little changed as investors largely shrugged off terrorist attacks in Brussels which left over 30 people deal and scores injured.

In corporate news, Credit Suisse was in the black after announcing plans to accelerate cost savings and cut 2,000 jobs in the global markets business.

French luxury brand Hermes was also on the front foot as its full year profit surpassed analysts’ expectations, with operating profit up 19% to €1.54bn.

B&Q owner Kingfisher rallied as its full year pre-tax profit beat analyst’s expectations and the company said its turnaround plan was on track.

Pharmaceuticals giant AstraZeneca nudged lower after saying its Brilinta drug missed its target during a trial in stroke patients, proving less effective than aspirin.

Still to come on the macroeconomic calendar, Eurozone consumer confidence is at 1500 GMT. In the US, MBA mortgage applications are at 1100 GMT while new home sales are scheduled for release at 1400 GMT.