European stocks higher as bond stress eases; DAX up 0.81%
Investing.com
Published Nov 16, 2011 04:41AM ET
During European morning trade, the EURO STOXX 50 jumped 1.22%, France’s CAC 40 advanced 0.91%, while Germany’s DAX 30 climbed 0.81%.
Market sentiment was hit earlier, after French 10-year bond yields rose to euro-era highs on Tuesday while Italian 10-year bond yields rose to near unsustainable levels, climbing above 7%.
Later Wednesday, Italian Prime Minister-designate Mario Monti was to meet with President Giorgio Napolitano to officially accept the post and present his ministers.
Financial stocks were broadly higher, led by Italian lenders as shares in Unicredit surged 2.77% and Intesa Sanpaolo jumped 2.63%.
French banks weren't far behind with shares in Societe Generale climbing 1.93% and BNP Paribas advancing 0.73%, while Germany's Deutsche Bank saw shares soar 1.48%.
Earlier Wednesday, Societe Generale announced a plan to cut several hundred jobs in its French corporate and investment bank in 2012, as part of a push to conform with new capital rules.
Meanwhile, French carmaker Peugeot Citroen eased up 0.34%, erasing Tuesday's losses after saying that 5,000 jobs will be cut in France. The company had already announced 6,000 layoffs across Europe last month.
In London, FTSE 100 rose 0.27% boosted by gains in the financial sector.
Shares in Barclays advanced 0.78% and Lloyds Banking climbed 0.48%, while
shares in the Royal Bank of Scotland and HSBC Holdings rose 0.38% and 0.21% respectively.
Meanwhile, energy stocks were mixed, as mining giants Rio Tinto and Bhp Billiton tumbled 1.16% and 0.52%, while British Petroleum advanced 0.17%.
Elsewhere, U.K. based recruitment business Michael Page International saw shares surge 3.51% after HSBC upgraded its rating on the firm to overweight from neutral.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a fall of 0.02%, S&P 500 futures signaled a 0.04% decline, while the Nasdaq 100 futures indicated a 0.03% gain.
Later in the day, the euro zone was to release official data consumer price inflation.
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Written By: Investing.com
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