European stocks sharply higher in subdued trade; Dax rallies 1.25%
Published May 28, 2013 03:44AM ET
Investing.com - European stocks were sharply higher in subdued trade on Tuesday, as investors were eyeing the release of U.S. economic reports later in the day.
During European morning trade, the EURO STOXX 50 surged 1.34%, France’s CAC 40 gained 1.32%, while Germany’s DAX 30 rallied 1.25%.
Investors still remained cautious amid expectations that the Federal Reserve is moving closer to scaling back its USD85 billion-a-month asset purchase program.
Last week, the minutes from the U.S. central bank’s May meeting showed that a "number" of policymakers were prepared to taper bonds purchases as soon as June.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale surged 1.53% and 2.39%, while Germany's Deutsche Bank jumped 1.30%.
Peripheral lenders added to gains, Spanish banks BBVA and Banco Santander rallied 1.39% and 1.66% respectively, while Italy's Intesa Sanpaolo an Unicredit gained 1.78% and 1.96%.
Elsewhere, Basilea Pharmaceutica surged 2.73% after the U.S. Food and Drug Administration granted seven-year market exclusivity for one of its treatments.
In London, FTSE 100 jumped 1.66%, as U.K. lenders tracked their European counterparts higher.
Shares in Lloyds Banking rallied 1.30% and the Royal Bank of Scotland gained 1.77%, while HSBC Holdings and Barclays advanced 1.83% and 2.43% respectively.
Adding to gains, Tui Travel saw shares soar 3.71% after Morgan Stanley held the stock's rating at "equal weight".
Meanwhile, mining stocks were mostly lower, as Rio Tinto declined 0.48% and gold producer Rangold Resources retreated 0.82%, while Eurasian Natural Resources plummeted 2.12%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.65% gain, S&P 500 futures signaled a 0.74% increase, while the Nasdaq 100 futures indicated a 0.97% jump.
Later in the day, the U.S. was to release private sector data on house price inflation and a report on consumer confidence.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.