European stocks add to gains as lenders rally; DAX soars 3.9%
Investing.com
Published Sep 27, 2011 08:49AM ET
During European afternoon trade, the EURO STOXX 50 surged 3.7%, France’s CAC 40 jumped 3.75%, while Germany’s DAX 30 soared 3.9%.
European equities added to strong gains after German Chancellor Angela Merkel stressed the importance of approving changes to the European Financial Stability Facility, the region’s bailout fund.
Merkel’s comments added to speculation that euro zone leaders are examining ways to enlarge the capacity of the EFSF, sending shares in the financial sector higher.
French lenders Societe Generale and BNP Paribas soared 10.8% and 10.3% respectively. The pair have been among the hardest hit in recent months amid worries over their exposure to Greek sovereign debt.
Italian banks Unicredit and Intesa Sanpaolo saw shares jump 5.3% and 6.85% apiece after the Italian Treasury sold a total of EUR14.5 billion of government debt at an auction earlier in the day.
Meanwhile, German automakers performed strongly, as Volkswagen saw shares climb 4.6% after European regulators approved the company’s planned takeover of German truckmaker MAN, which saw shares rally 6.75%.
In London, the commodity-heavy FTSE 100 climbed 2.8% as shares in raw material producers rallied after metal and oil prices advanced on the New York Mercantile Exchange.
Copper producers Xstrata and Kazakhmys saw shares jump 6.5% and 7.7% respectively, mining giant Rio Tinto gained 5.3%, while silver producer Fresnillo saw shares surge 7.6%.
U.K. lenders also contributed to gains, tracking their European counterparts higher. Barclays saw shares gain 5.3%, while Royal Bank of Scotland shares rose 5.15%.
Elsewhere, U.S. equity markets pointed to a sharply higher open. The Dow Jones Industrial Average futures pointed to a gain of 1.65%, S&P 500 futures signaled an increase of 1.8%, while the Nasdaq 100 futures indicated a 1.45% gain.
Later in the day, the U.S. was to publish industry data on house prices, as well as a report on consumer confidence.
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Written By: Investing.com
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