European stocks higher on debt plan hopes; DAX up 0.78%
Investing.com
Published Oct 24, 2011 06:00AM ET
During European morning trade, the EURO STOXX 50 rose 0.28%, France’s CAC 40 climbed 0.27%, while Germany’s DAX 30 gained 0.78%.
Over the weekend, European leaders appeared to be moving closer to a new plan to stem the region's financial crisis, including measures to recapitalize banks and boost the firepower of the euro zone's bailout fund, but divisions remained over restructuring Greek debt.
Also Monday, preliminary data showed that manufacturing activity in the euro zone slumped to a 27-month low in October. Service sector output in the single-currency bloc also declined to a 27-month low, adding to fears that the euro zone could be slipping into a recession.
The financial sector led gains, with shares in France's Credit Agricole jumping 2.07% and Societe Generale climbing 1.64%, while BNP Paribas saw shares surge 1.07%.
Germany's Deutsche Bank was up 1.42%, while peripheral lenders added to gains, with shares in Spain's BBVA and Banco Santander rising 0.64% and 0.73%.
Elsewhere, Switzerland's Swatch Group soared 3.31% on reports that the company's sales will exceed CHF7 billion this year and that September has been the watchmaker's strongest-ever month.
In London, commodity-heavy FTSE 100 advanced 0.51%, tracking gains in commodity prices.
Mining giants Rio Tinto and BHP Billiton surged 4.61% and 3.16% respectively.
Copper producers also contributed to gains with shares in Kazakhmys and Xstrata jumping 5.58% and 3.41%.
U.K. lenders were also on the upside, as shares in the Royal Bank of Scotland rose 2.09% and HSBC Holdings advancing 1.92%, while Barclays and Lloyds Banking soaring 2.38% and 3.83% respectively.
Elsewhere, U.S. equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.26%, S&P 500 futures signaled a 0.23% increase, while the Nasdaq 100 futures indicated an advance of 0.38%.
Earlier in the day, a preliminary report showed that the Chinese HSBC manufacturing activity index rose to 51.1 in October, a five-month high after contracting in the three previous months.
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Written By: Investing.com
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