European stocks rise as financials extend gains; DAX up 2.14%
Investing.com
Published Oct 06, 2011 05:53AM ET
During European morning trade, the EURO STOXX 50 jumped 1.98%, France’s CAC 40 rallied 2.00%, while Germany’s DAX 30 climbed 2.14%.
Risk sentiment strengthened after European leaders acknowledged that further initiatives were necessary to support the struggling banking sector in the single currency bloc.
European equities were also boosted after the European Banking Authority said it was reviewing bank capital positions and that there will be no new round of stress tests.
French lenders led gains with shares in BNP Paribas surging 6.35% and Societe Generale jumping 5.34%, while Credit Agricole shares climbed 4.83%
Troubled French-Belgian lender Dexia saw shares climb 2.45%, after Belgian Prime Minister Yves Leterme reportedly said that the government will make sure the Dexia survives, though it won’t rule out a total or partial nationalization of the bank’s Belgian operations.
Car makers also added to gains, as shares in Peugeot Citroen soared 6.56% and BMW jumped 4.21%, while Daimler advanced 2.77%
In London, the FTSE 100 rose 1.41%, as U.K. lenders tracked gains posted by their European counterparts.
Shares in Lloyds Banking were up 5.15% and Barclays surged 4.65%, while the Royal Bank of Scotland saw shares advance 4.25%.
Mining giants Rio Tinto and BHP Billiton weren't far behind, with shares climbing 5.11% and 3.55% respectively, while copper producers Kazakhmys and Xstrata jumped 5.88% and 3.38%.
Elsewhere, U.S. equity markets pointed to a higher open after a report on Wednesday showed that U.S. private sector employment rose more-than-expected last month.
The Dow Jones Industrial Average futures pointed to a rise of 0.68%, S&P 500 futures signaled a gain of 0.57%, while the Nasdaq 100 futures indicated a 0.47% increase.
Later in the day, the European Central Bank was to announce its benchmark interest rate. The announcement was to be followed by a closely watched press conference, ECB President Jean-Claude Trichet's last before he steps down.
A report on German factory orders was also to be published later Thursday.
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Written By: Investing.com
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