European stocks higher in quiet trade; Dax up 0.73%
Published May 27, 2013 03:46AM ET
Investing.com - European stocks were higher in quiet trade on Monday, as Friday's upbeat German data continued to support, although speculation over a possible near-term end to the Federal Reserve's bond buying program persisted.
During European morning trade, the EURO STOXX 50 jumped 0.91%, France’s CAC 40 climbed 0.92%, while Germany’s DAX 30 advanced 0.73%.
On Friday, data showed that Germany’s Ifo index of business climate rose to 105.7 from 104.4 in April, fuelling optimism over the outlook for the euro zone’s largest economy. Analysts had expected the index to tick up to 104.5.
But stocks remained under pressure after Fed Chairman Ben Bernanke said a decision to scale back the U.S. central bank’s USD85 billion-dollar-a-month asset purchase program could be taken in the "next few meetings" depending on economic data.
Meanwhile, Wednesday’s minutes from the U.S. central bank’s May meeting showed a "number" of policymakers were prepared to taper bonds purchases as soon as June.
Financial stocks were broadly higher, as French lenders Societe Generale and BNP Paribas jumped 1.27% and 1.60%, while Germany's Deutsche Bank rallied 1.09%.
Peripheral lenders added to gains, Spanish banks BBVA and Banco Santander advanced 0.70% and 1.32% respectively, while Italy's Intesa Sanpaolo an Unicredit surged 1.23% and 1.61%.
Elsewhere, SAP AG climbed 0.66%, amid reports the German maker of business-management software held discussions within recent weeks to acquire Jive Software, which has a market value of more than USD1 billion, people familiar with the matter said.
Fiat SpA, Italy’s largest carmaker, soared 3.97%, as the Italian government will ask Chief Executive Officer Sergio Marchionne what it "can do to let the carmaker keep its plants in Italy," Industry Minister Flavio Zanonato said in a television interview with Sky Tg24.
In London, FTSE 100 remained shut for the Spring Bank holiday.
In the U.S., were to remain closed for the Memorial Day holiday.
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Written By: Investing.com
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