European stocks higher ahead of U.S. data; DAX jumps 1.29%

Investing.com - European stock markets were sharply higher on Thursday, as investors eyed U.S. GDP and jobless claims data for signs of recovery in the world’s second largest economy.

During European afternoon trade, the EURO STOXX 50 climbed 1.45%, France’s CAC 40 soared 1.58%, while Germany’s DAX 30 added 1.29%.

Trading volumes were expected to remain light ahead of the Christmas holiday weekend, as many traders have closed books before the end of the year, reducing liquidity in the market and increasing the volatility.

Meanwhile, concerns over the debt crisis in the euro zone persisted after the European Central Bank met heavy demand for its unprecedented three-year loan operation on Wednesday and amid sustained worries over mass downgrades in the single currency bloc.

Financial stocks remained broadly higher as shares in Germany’s Deutsche Bank surged 3.24% and Dutch lender soared 2.88, while France’s BNP Paribas and Credit Agricole jumped 2.17% and 0.69%.

Peripheral lenders extended earlier gains with Italian Intesa Sanpaolo climbing 1.84% and Unicredit jumping 1.77%, while Spain’s BBVA and Banco Santander advanced 1.09% and 1.28%.

Meanwhile, energy company RWE AG rallied 2.65% on reports the German city of Wiesbaden may buy a stake in Suewag Energie AG if RWE sells its holding in the firm.

In London, FTSE 100 advanced -% as lenders tracked their European counterparts sharply higher and after data showed that the U.K.’s economy expanded 0.6% during the third quarter.

Shares in Lloyds Banking surged 3.71% and the Royal Bank of Scotland jumped 3.18%, while Barclays and HSBC Holdings climbed 2.66% and 1.37% respectively.

Elsewhere, mining giants Rio Tinto and Bhp Billiton extended gains with shares jumping 2.51% and 1.87%, while copper producers Xstrata and Kazakhmys soared 2.36% and 3.27%.

Elsewhere, digital rights business Perform Group added 2.50% after winning a four-year deal with the Women’s Tennis Association to manage all media rights from the beginning of 2013.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.54%, S&P 500 futures signaled a 0.65% increase, while the Nasdaq 100 futures indicated a 0.61% gain.

Later in the day, ECB President Mario Draghi and Bank of England Governor Mervyn King were to hold a joint press conference in Frankfurt after a meeting of the European Systemic Risk Board.

In the U.S., revised data on third quarter GDP was to be published as well as a weekly report on initial jobless claims.