European stocks turn higher; DAX climbs 1.3%
Investing.com
Published Sep 20, 2011 05:22AM ET
During European morning trade, the EURO STOXX 50 climbed 0.85%, France’s CAC 40 rose 0.55%, while Germany’s DAX 30 rallied 1.3%.
European equities were down after the open after ratings agency Standard & Poor’s downgraded Italy’s sovereign credit rating by one notch to A from A+ and kept its outlook on negative.
However, reports that the European Central Bank was buying Italian government debt helped lift sentiment. Shares in Italian lenders Unicredit and Banco Popolare jumped 1.9% and 2.3% respectively.
Elsewhere in the sector, shares in French lenders came under pressure amid reports that the Bank of China has halted foreign exchange swaps with French banks due to the debt crisis in the euro zone.
Societe Generale shares tumbled 3.3%, while BNP Paribas saw shares drop 2.95%.
Meanwhile, German utility providers performed strongly after a German court suspended a federal tax on companies that use nuclear fuel. Shares in RWE jumped 3.2%, while rival E.ON saw shares rise 3.3%.
Elsewhere, in London, the FTSE 100 rose 0.65% as shares in lenders and raw material producers bounced back from the previous day’s sharp losses.
HSBC Holdings saw shares climb 1.1%, while Lloyds Banking Group added 1.3%.
Meanwhile, mining giants BHP Billiton and Rio Tinto rose 1.25% and 1.1% respectively, shares in copper producer Anglo American jumped 1.5%, while silver producer Fresnillo saw shares rally 2.65%. .
Elsewhere, U.S. equity markets pointed to a modestly higher open ahead of earnings reports from software maker Adobe Systems and packaged food producer Conagra Foods.
The Dow Jones Industrial Average futures pointed to a gain of 0.15%, S&P 500 futures signaled a rise of 0.15%, while the Nasdaq 100 futures indicated a 0.25% gain.
Later in the day, the U.S. was to publish government data on building permits and a report on housing starts.
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Written By: Investing.com
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