European stocks open sharply higher as oil rebounds; Dax jumps 1.12%

Investing.com - European stocks opened sharply higher on Friday, as oil prices regained some ground, although ongoing fears over the health of the global economy and the euro zone financial sector continued to weigh.

During European morning trade, the EURO STOXX 50 advanced 0.83%, France’s CAC 40 rallied 1.03%, while Germany’s DAX 30 jumped 1.12%.

Oil prices regained some ground overnight after the United Arab Emirates energy minister said the OPEC was willing to talk with other exporters about cutting output. Crude futures for April delivery were still below $28 a barel in European morning hours.

Earlier Friday, data showed that German gross domestic product grew 0.3% in the fourth quarter, in line with expectations and unchanged from the previous quarter. Year-on-year, German GDP rose 2.1% in the last quarter, below expectations for a 2.3% growth rate.

Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) surged 3.48% and 3.22%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) soared 4.79% and 12.19%.

Commerzbank posted fourth quarter net profit in line with analysts’ estimates on Friday.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) climbed 4.90% and 5.34% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) jumped 2.39% and 1.97%.

Elsewhere, Renault (PA:RENA) rallied 2.46% after the French carmaker said full-year revenue increased by 10.4% and that net income climbed 48.1% to €2.9 billion.

In London, FTSE 100 rallied 1.74%, led by Rolls-Royce (L:RR), whose shares skyrocketed 12.45% after the luxury carmaker said underlying pretax profit exceeded analysts’ expectations.

U.K. lenders tracked their European counterparts higher, as Lloyds Banking (L:LLOY) and HSBC Holdings (L:HSBA) jumped 2.52% and 2.58% respectively, while the Royal Bank of Scotland (L:RBS) climbed 2.86% and Barclays (L:BARC) surged 4.63%.

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Mining stocks added to gains on the commodity-heavy index. Shares in Rio Tinto (L:RIO) rallied 3.12% and Bhp Billiton (L:BLT) advanced 4.16%, while Glencore (L:GLEN) and Anglo American (L:AAL) soared 4.70% and 7.18% respectively.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.53% climb, S&P 500 futures a 0.67% increase, while the Nasdaq 100 futures indicated a 0.61% gain.