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European stocks open higher with eyes on Brexit process; DAX up 0.62%

Published 03/29/2017, 03:42 AM
Updated 03/29/2017, 03:42 AM
© Reuters.  Frankfurt Stock Exchange

Investing.com - European stocks opened higher on Wednesday, as official Brexit negotiations were set to begin later in the day and as markets recovered from the Trump administration’s failure to replace Obamacare.

During European morning trade, the EURO STOXX 50 gained 0.48%, France’s CAC 40 climbed 0.48%, while Germany’s DAX 30 advanced 0.62%.

Markets recovered on Wednesday from the disappointment of President Donald Trump's failed health-care bill.

Elsewhere, the British government sent a letter to Brussels formally starting the country's exit from the European Union.

The letter was set to be delivered midday Wednesday to European Council President Donald Tusk. It will officially trigger the Brexit proceedings.

Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) gained 0.88% and 1.20%, while Germany’s Detusche Bank and Commerzbank (DE:CBKG) surged 1.41% and 3%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) advanced 0.42% and 0.76% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) rose 0.19% and 0.43%.

Elsewhere, Siemens AG (DE:SIEGn) rallied 1.12% after the German engineering group said it was committed for the long term to Britain and that it has no plans to leave London. The company employs more than 15,000 people in the U.K.

In London, commodity-heavy FTSE 100 rose 0.29%, boosted by sharp gains in the mining sector.

Shares in Glencore (LON:GLEN) advanced 0.75% and Rio Tinto (LON:RIO) jumped 1.18%, while rivals Antofagasta (LON:ANTO) and BHP Billiton (LON:BLT) rallied 1.50% and 2.10% respectively.

Financial stocks were also mostly on the upside, as Barclays (LON:BARC) edged up 0.11% and HSBC Holdings (LON:HSBA) climbed 0.56%, while the Royal Bank of Scotland (LON:RBS) climbed 0.99%. Lloyds Banking (LON:LLOY) underperformed however, with shares down 0.46%.

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Meanwhile, Tui AG NA (LON:TUIT) saw shares tumble 1.23% even as the travel and tourism company reiterated its target of reaching at least 10% growth in underlying full-year operating profit, thanks to solid demand for Winter and Summer bookings.

Old Mutual PLC (LON:OML) was also on the downside, with shares down 0.41% after the investments giant said it is selling a £358 million stake in its asset management arm, in the latest stage of its plan to split itself up into four independent companies.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.14% rise, S&P 500 futures showed a 0.18% gain, while the Nasdaq 100 futures indicated a 0.22% increase.

Latest comments

Brexit is suddenly good for EU stocks?nice sentiment shift
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