Euro shares close sharply higher; DAX up 0.91%

Investing.com - European stocks closed sharply higher Thursday, as extremely bullish U.S. data sparked the risk on equity trade..

At the close of the  European session  , the EURO STOXX 50 advanced 1.02%, France’s CAC 40 rose 1.17%, while Germany’s DAX 30 climbed 0.91%. 

Sparking the bullish sentiment, U.S. consumer confidence rose to the highest level since February 2008 in October, industry data showed on Thursday.

In a report, the Conference Board, a market research group said its index of consumer confidence rose to 72.2 in October from a reading of 68.4 in September, whose figure was revised down from 70.3. 

Analysts had expected the index to rise to 72.5 in October. 
In addition, U.S. non-farm private employment rose more-than-expected in October, industry data showed on Thursday.

In a report, payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 158,000 in October, surpassing expectations for an increase of 135,000. 

The previous month’s figure was revised down to a gain of 88,200 from a previously reported increase of 162,000.

However, investors remained cautious amid uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding. 

Sentiment found some support however after official data showed that China’s manufacturing purchasing managers’ index came in at 50.2 in October, up from 49.8 in September, just slightly below forecasts for a reading of 50.3.

A separate report showed that the final reading of China’s HSBC PMI came in at 49.5 in September, an eight month high. 

Financial stocks turned broadly higher, as shares in French lenders BNP Paribas and Societe Generale added 0.59 % and 0.01%, while Germany's Deutsche Bank and Commerzbank advanced 0.60% and 0.81% respectively. 

Italian lenders also posted sharp gains, as shares in Unicredit wer up 1.59% and Intesa Sanpaolo saw shares advance 0.89%. 

Meanwhile, Maurel & Prom surged 8.80% amid reports China Petrochemical, also known as Sinopec Group, has held informal discussions with Maurel in the past year though hurdles to a deal remain. 

In London, FTSE 100 rose surged 1.27%, boosted by sharp gains in financial stocks. 

Shares in HSBC Holdings jumped 1.23% and Barclays advanced 2.67%, while the Royal Bank of Scotland and Lloyds Banking rallied 3.28% and 6.46% respectively. 

Lloyds Banking said earlier that the amount it pays out each month to settle payment protection insurance claims fell to GBP250 million in the third quarter from GBP300 million pounds in the second half. 

Mining giant Rio Tinto added to gains, with shares rising 0.60%, while copper producers Xstrata and Kazakhmys added 0.12% and 0.28%, trimming earlier gains. 

Also on the upside, British Sky Broadcasting saw shares surge 5.01% after saying that first quarter earnings were up 16%, as price rises and the sale of additional products to subscribers helped mask an otherwise steady performance in signing up new customers. 

In the U.S., equity markets followed higher with the Dow up 1.05%, the broad based S&P 500 up 1.06% and the tech heavy Nasdaq trading ahead by 1.37%.

Investors are awaiting the non farm payrolls and the unemployment rate from the U.S. on Friday.