European stocks turn higher as banks rally; DAX jumps 2.3%
Investing.com
Published Sep 26, 2011 05:10AM ET
During European morning trade, the EURO STOXX 50 rallied 2.5%, France’s CAC 40 climbed 1.9%, while Germany’s DAX 30 jumped 2.3%.
European equities opened lower as risk sentiment was hit after a weekend meetings of leaders from the G-20 nations and the International Monetary Fund resulted in no fresh steps to tackle the debt crisis in the single currency bloc.
Shares in the financial sector were down after the open before bouncing higher amid speculation the ECB was buying Italian and Spanish government debt.
Italian banks Unicredit and Intesa Sanpaolo saw shares jump 6% and 7.8% respectively, while Spanish banking giant Banco Santander rose 3.9%.
Shares in beaten-up French lenders BNP Paribas and Societe General rallied 7.3% and 6.2% apiece, as the previous week’s rout created buying opportunities for investors.
Insurers also contributed to gains, with German insurance firm Allianz jumping 8.6%, while shares in AXA surged 8.2%.
Shares in German pharmaceutical giant Bayer climbed 4.3%, after announcing positive results from a Phase III trial of its Alpharadin prostate cancer drug.
In London, the FTSE 100 advanced 0.9% as U.K. lenders led gains, tracking their European counterparts higher. Shares in Royal Bank of Scotland rallied 5.2%, Barclays shares gained 6.5%, while shares in Lloyds Banking Group rose 3.8%.
Gains were limited as mining shares performed poorly, amid mounting fears over the outlook for global economic growth.
Copper producers Xstrata and Kazakhmys retreated 1.35% and 2.4% respectively, while shares in silver producer Fresnillo tumbled 4% after silver prices dropped to a 10-month low.
Elsewhere, U.S. equity markets pointed to higher open. The Dow Jones Industrial Average futures pointed to a gain of 0.7%, S&P 500 futures signaled an increase of 0.85%, while the Nasdaq 100 futures indicated a 0.65% gain.
Later in the day, the U.S. was to produce government data on new home sales.
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Written By: Investing.com
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