European stocks open higher as sentiment improves; Dax jumps 0.99%

European stocks opened higher on Tuesday, tracking their Asian counterparts as sentiment improved although trading volumes remained thin ahead of the New Year holiday.

Heading into the final week of the year, trading volumes are expected to remain light as many traders already closed books, reducing liquidity in the market which could result in exaggerated moves.

During European morning trade, the EURO STOXX 50 rallied 1%, France’s CAC 40 advanced 1.09%, while Germany’s DAX 30 jumped 0.99%.

Investors continued to focus on the current oil rout amid ongoing concerns over a global supply glut and the lack of demand.
Crude oil futures for February delivery were at $36.98 in early European trading, not far from the 11-year low of $35.98 hit on December 22.

Financial stocks were mostly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) gained 0.50% and 0.68%, while Germany's Deutsche Bank (DE:DBKGn) rallied 0.91%.

Deutsche Bank was in the spotlight after agreeing to sell its 20% stake in China's Hua Xia Bank for up to $4 billion in a move to raise cash and reduce its balance sheet exposure.

Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) advanced 0.72% and 0.88% respectively, while Spanish banks BBVA (MC:BBVA) climbed 0.61% and 1.03%.

Elsewhere, Audi AG after saying it plans to keep capital spending stable in 2016 even as rival company Volkswagen (DE:VOWG_p) AG lowers investment across its 12 automotive brands in the wake of the diesel-emissions cheating scandal.

In London, FTSE 100 rose 0.22%, led by Weir Group (L:WEIR), whose shares surged 2.07%.

Financial stocks added to gains, as Lloyds Banking (L:LLOY) edged up 0.08% and the Royal Bank of Scotland (L:RBS) climbed 0.46%, while Barclays (L:BARC) advanced 0.61%. HSBC Holdings (L:HSBA) underperformed, with shares slipping 0.19%.
Meanwhile, mining stocks were broadly lower on the commodity-heavy index. Rio Tinto (L:RIO) and Antofagasta (L:ANTO) both lost 1.47% , while Glencore (L:GLEN) tumbled 1.84% and Anglo American (L:AAL) plunged 3.79%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.36% gain, S&P 500 futures signaled a 0.33% rise, while the Nasdaq 100 futures indicated a 0.40% increase.

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