European stocks rebound from route; DAX gains 1.3%
Investing.com
Published Sep 06, 2011 05:31AM ET
During European morning trade, the EURO STOXX 50 rose 1.35%, France’s CAC 40 gained 1.2%, while Germany’s DAX 30 jumped 1.3%.
European equities suffered sharp losses on Monday, with Germany’s DAX 30 tumbling 5.3% and France’s CAC 40 plunging 4.5% as lingering worries over the euro zone sovereign debt crisis and mounting concerns over the U.S. economic outlook prompted investors to dump riskier assets.
Shares in the beaten-up financial sector advanced, with Deutsche Bank climbing 2.05% after JP Morgan upgraded the stock to ‘overweight’ from ‘neutral’, saying there could be 81% upside for the share.
Elsewhere in the sector, Italy’s Unicredit jumped 2.15%, Banco Santander shares gained 1.3%, while U.K. lenders Royal Bank of Scotland and Lloyds Banking Group rallied 4.5% and 5.1% respectively.
Shares in French drug maker Sanofi added 1.3% after Credit Suisse upgraded the stock to ‘benchmark’ from ‘underweight’.
Elsewhere, Switzerland’s SMI 20 Index surged 5.1% as Swiss exporters rallied after the SNB announced that it had set a minimum exchange rate target of 1.20 per euro for the Swiss franc.
Swiss conglomerate ABB saw shares jump 6.1%, cement manufacturer Holcim rose 5.9%, while Nestle shares gained 4.5%.
In London, the FTSE 100 rose 1.5% as shares in hotel and restaurant operator Whitbread surged 8% after reporting a 13% increase in second quarter sales.
Miners also contributed to gains, with shares in mining giants BHP Billiton and Rio Tinto climbing 2.3% and 2.65% respectively, while copper producer Xstrata saw shares rise 2.3%.
Elsewhere, the outlook for U.S. equity markets was downbeat as markets were set to resume trading following the Labor Day holiday. The Dow Jones Industrial Average futures pointed to a decline of 1.2%, S&P 500 futures dropped 1.5%, while the Nasdaq 100 futures slumped 1%.
Later in the day, the U.S. Institute of Supply Management was to produce a report on U.S. service sector activity.
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Written By: Investing.com
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