European stocks higher on Chinese GDP data; DAX jumps 1.02%
Investing.com
Published Jan 17, 2012 03:48AM ET
During European morning trade, the EURO STOXX 50 jumped 1.08%, France’s CAC 40 climbed 0.98%, while Germany’s DAX 30 surged 1.02%.
Chinese gross domestic product grew at an annualized rate of 8.9% in the fourth quarter, slowing from the previous quarter’s 9.1% rate, but slightly better than expectations for an 8.8% increase.
The data came after ratings agency Standard and Poor’s downgraded the euro zone’s bailout fund, the European Financial Stability Facility, by one notch to AA+.
S&P said the decision was inevitable following Friday’s downgrade of France and Austria, two of the EFSF's guarantors.
Automakers were among the top gainers with Daimler surging 3.56% and BMW climbing 2.77%, while Volkswagen jumped 2.22%.
Financial stocks also added to gains, led by Dutch lender ING Group with shares soaring 2.97%. Germany’s Deutsche Bank advanced 2.22%, while France’s BNP Paribas and Societe Generale saw shares rise 2.49% and 2.13%
In London, FTSE 100 added 0.81%, as U.K. lenders tracked their European counterparts sharply higher.
Shares in the Royal Bank of Scotland surged 3.97% and HSBC Holdings climbed 2.06%, while Lloyds Banking and Barclays jumped 1.58% and 0.63% respectively.
Mining giants Bhp Billiton and Rio Tinto were also higher, with shares adding 2.26% and 1.62%, while copper producers Xstrata and Kazakhmys rose 2.14% and 2.55%.
Rio Tinto said earlier that fourth-quarter iron ore production rose to a record, driven by expansion at its mines and ports in Australia’s Pilbara region.
Meanwhile, Afren Plc soared 13.43% after discovering oil and gas off the coast of Nigeria.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.73%, S&P 500 futures signaled a 0.73% increase, while the Nasdaq 100 futures indicated a 0.81% jump.
Later in the day, the euro zone was to produce a report on the German ZEW economic sentiment index, as well as official data on consumer price inflation.
In the U.S., a report was to be produced on manufacturing activity in New York State.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.