European stocks sharply higher on Fed optimism; Dax jumps 1.48%
Published Jul 11, 2013 03:34AM ET
Updated Jul 11, 2013 03:45AM ET
Investing.com - European stocks were sharply higher on Thursday, as dovish comments by Federal Reserve Chairman Ben Bernanke on Wednesday sent global stocks broadly higher.
During European morning trade, the EURO STOXX 50 rallied 1.18%, France’s CAC 40 gained 1.06%, while Germany’s DAX 30 jumped 1.48%.
Global stocks gained ground after Bernanke said the Fed will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.
The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale jumped 1.60% and 2.29%, while Germany's Deutsche Bank surged 2.10%.
Peripheral lenders added to gains, with Spanish banks BBVA and Banco Santander advancing 0.78% and 1.47% respectively, while Italy's Unicredit and Intesa Sanpaolo rallied 1.88% and 2.10%.
In London, commodity-heavy FTSE 100 jumped 1%, boosted by sharp gains in mining stocks.
Mining giants Rio Tinto and BHP Billiton surged 4.48% and 4.58% respectively, while Polymetal and Fresnillo soared 7.96% and 9.57%.
Financial stocks were also broadly higher, as shares in HSBC Holdings climbed 0.79% and Lloyds Banking jumped 1.29%, while the Royal Bank of Scotland and Barclays rallied 1.16% and 1.48%.
Elsewhere, EasyJet gained 0.60% as shareholders were preparing to vote, later in the day, on an order for 135 Airbus SAS jets valued at USD13 billion.
Adding to gains, Hays Plc surged 2.68% after saying its fiscal fourth-quarter total net fees increased 3%. In addition, the U.K. recruiter forecast full-year operating profit at the top of the GBP112.3 million to GBP125.5 million range of market estimates.
In the U.S., equity markets pointed to a sharply higher open. The Dow Jones Industrial Average futures pointed to a 0.91% gain, S&P 500 futures signaled a 0.98% jump, while the Nasdaq 100 futures indicated a 1.05% rally.
Later in the day, the U.S. was to release the weekly report on initial jobless claims.
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Written By: Investing.com
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