European stocks surge on fiscal pact hopes; DAX jumps 3.02%
Investing.com
Published Nov 28, 2011 04:05AM ET
During European morning trade, the EURO STOXX 50 soared 2.97%, France’s CAC 40 climbed 2.93%, while Germany’s DAX 30 jumped 3.02%.
Market sentiment improved as euro-zone leaders were negotiating a fiscal pact aimed at preventing the single currency bloc from fracturing.
Viewed as a first step toward closer fiscal and economic coordination within the single currency area, the proposal would make budget discipline legally binding and enforceable by European authorities.
Financial stocks were broadly higher, led by Dutch lender ING Group with shares advancing 5.45%. France’s BNP Paribas surged 5.05% and Societe Generale jumped 4.72%, while German lender Deutsche Bank saw shares climb 3.99%.
Peripheral lenders were also sharply higher, with Spain’s BBVA advancing 2.98% and Banco Santander climbing 2.28%, while Italian banks Unicredit and Intesa Sanpaolo soared 2.78% and 3.80% respectively.
Elsewhere, Belgian lenders Dexia and KBC Group skyrocketed 12.67% and 10.66%, after ratings agency Standard & Poor's downgraded its rating on Belgium by one notch on Friday, prompting six parties to reach an agreement on deficit reduction.
In London, FTSE 100 jumped 1.96%, as U.K. lenders tracked their European counterparts sharply higher.
Shares in the Royal Bank of Scotland surged 5.02% and Lloyds Banking advanced 4.66%, while Barclays and Anglo American jumped 4.53% and 2.37% respectively.
The mining sector also contributed to gains as commodity prices advanced after U.S. retail sales over Thanksgiving weekend increased 16%. Rio Tinto and Bhp Billiton saw shares soar 3.28% and 3.11% respectively, while Xstrata and Kazakhmys climbed 3.15% and 4.11%.
In the U.S., equity markets pointed to a sharply higher open. The Dow Jones Industrial Average futures pointed to a surge of 2.15%, S&P 500 futures signaled a 2.62% jump, while the Nasdaq 100 futures indicated a 2.36% increase.
Later in the day, the U.S. was to release official data on new home sales.
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Written By: Investing.com
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