European stocks open mostly higher on Draghi remarks; Dax down 0.52%

Investing.com - European stocks opened higher on Wednesday, tracking their U.S. and Asian counterparts and as comments by European Central Bank President Mario Draghi boosted risk appetite.

During European morning trade, the EURO STOXX 50 added 0.16%, France’s CAC 40 rose 0.27%, while Germany’s DAX 30 declined 0.52%.

European equities strengthened after ECB President Mario Draghi reiterated that the central bank is ready to act to maintain support of the euro-area recovery.

Mr. Draghi was speaking at the ECB Forum on Banking Supervision, in Frankfurt.

Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) gained 0.11% and 0.56%, while Germany's Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) added 0.18% and 0.21%.

Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) rose 0.32% and 0.77% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) climbed 0.54% and 0.64%.

On the downside, Barry Callebaut AG plumged 5.83% after the world’s biggest maker of bulk chocolate cut its mid-term forecast for volume growth and said this financial year will be challenging due to a difficult cocoa market.

Volkswagen (DE:VOWG) added to losses, with shares down 3.98% after the carmaker said it found faulty emissions readings for the first time in gasoline-powered vehicles. An internal probe reportedly showed 800,000 cars had "unexplained inconsistencies" concerning their carbon-dioxide output.

In London, commodity-heavy FTSE 100 gained 0.59%, boosted by sharp gains in the mining sector.

Shares in Bhp Billiton (L:BLT) and Antofagasta (L:ANTO) jumped 2.74% and 3.17% respectively, while Anglo American (L:AAL) rallied 4.64% and Glencore (L:GLEN) surged 5.17%.

Earlier Wednesday, Glencore said it sold a share of its future silver output in a deal that includes a $900 million upfront payment.

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App

Marks & Spencer Group (L:MKS) Plc was also on the upside, as shares soared 3.36% after the retailer reported better-than-expected first-half earnings and raised its profitability forecast.

Financial stocks added to gains, as the Royal Bank of Scotland (L:RBS) rose 0.22% and Lloyds Banking (L:LLOY) advanced 0.62%, while HSBC Holdings (L:HSBA) rallied 1.31%. Barclays (L:BARC) underperformed, with shares edging down 0.09%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.04% gain, S&P 500 futures signaled a 0.01% uptick, while the Nasdaq 100 futures indicated a 0.06% rise.