European stocks steady to higher, U.S. GDP still supports; Dax up 0.31%

Investing.com - European stocks were steady to higher in subdued trade on Monday, as market sentiment remained mildly supported after Friday's upbeat U.S. economic growth data.

During European morning trade, the EURO STOXX 50 inched 0.06% higher, France’s CAC 40 eased 0.01%, while Germany’s DAX 30 rose 0.31%.

Market sentiment remained supported after official data on Friday showed that U.S. gross domestic product expanded by 4.1% in the third quarter, above initial estimates for 3.6% growth.

Global equities had also strengthened last week after the Federal Reserve announced that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. Outgoing Fed Chairman Ben Bernanke said the economy was continuing to make progress.

The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.

Financial stocks were higher, as French lenders BNP Paribas and Societe Generale rose 0.20% and 0.45%, while Germany's Deutsche Bank climbed 0.74%.

Among peripheral lenders, Italy's Unicredit and Intesa Sanpaolo gained 0.42% and 0.48%. Spanish banks BBVA and Banco Santander underperformed however, down 0.18% and 0.16% respectively.

Elsewhere, Swatch shares were up 0.30% after the maker of Swiss watches won an arbitration award of CHF402 million from Tiffany & Co.

Adding to gains, Lanxess rallied 1.84% after the chemical maker’s chief executive officer said the company will reach its full-year forecast for earnings.

In London, FTSE 100 gained 0.38%, led by ARM Holdings, which designs chips for Apple’s iPhones, up 2.53%. Apple struck a deal to sell iPhones through China Mobile Dialog.

Meanwhile, financial stocks were also mostly higher. Shares in the Royal Bank of Scotland added 0.28% and Barclays rose 0.38%, while Lloyds Banking and HSBC Holdings both advanced 0.45%.

In the mining sector, stocks were on the upside as Rio Tinto edged up 0.15%, while BHP Billiton climbed 0.64% and Polymetal added 0.21%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.27% rise, S&P 500 futures signaled a 0.34% increase, while the Nasdaq 100 futures indicated a 0.62% climb.

Later in the day, the U.S. was to release official data on personal spending, as well as a report by the University of Michigan on consumer sentiment.