European stocks broadly higher; DAX jumps 1.1%
Investing.com
Published Aug 24, 2011 05:53AM ET
During European morning trade, the EURO STOXX 50 advanced 0.65% France’s CAC 40 rose 0.8%, while Germany’s DAX 30 jumped 1.1%
Shares in Italian and Spanish lenders found support amid speculation the European Central Bank was buying Italian and Spanish government debt in an effort to ease pressure on the region’s third and fourth largest economies.
Italian lenders Unicredit and Intesa Sanpaolo saw shares climb 1.65% and 1.4% respectively, while Spain’s Banco Santander advanced 1.1%.
However, other European lenders were mixed amid lingering fears over the region’s debt crisis after yields on two-year Greek debt soared to a euro-era record of 40.47% earlier.
France’s Societe Generale climbed 1.1%, while Deutsche Bank was down 1%.
On the downside, Dutch brewer Heineken tumbled 12.3% after warning that full-year profit will be flat, as “volume weakness in the high-selling season of July and early August” was likely to weigh on results.
In London, the commodity-heavy FTSE 100 advanced 0.5% as shares in Tullow Oil surged 6.15% after reporting first-half profit nearly quadrupled to GBP188.5 million.
Mining giant BHP Billiton saw shares climb 1% after saying that fiscal second-half net profit rose 49.5% to a record GBP7.93 billion, as prices for raw materials such as copper, iron ore and coal reached all-time highs.
The upbeat results boosted other shares in the sector, with Rio Tinto gaining 1.2% and copper producer Xstrata adding 2.25%.
Meanwhile, hedge-fund manager Man Group saw shares surge 5% after HSBC Holdings upgraded the stock to ‘overweight’ and raised its target price by 15%.
The outlook for U.S. equity markets was downbeat. The Dow Jones Industrial Average futures pointed to a loss of 0.55%, the S&P 500 futures indicated a drop of 0.5%, while the Nasdaq 100 futures showed a 0.6% decline.
Later in the day, the U.S. was to publish official data on durable goods orders as well a government report on crude oil stockpiles.
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Written By: Investing.com
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