European stocks open sharply higher as sentiment improves; Dax up 1.95%

 European stocks opened sharply higher on Tuesday, as market sentiment improved even after data showed that China’s economy slowed moderately in the fourth quarter.

During European morning trade, the EURO STOXX 50 rallied 1.95%, France’s CAC 40 surged 1.99%, while Germany’s DAX 30 jumped 1.95%.

Data earlier showed that China’s gross domestic product rose 1.6% in the fourth quarter, below expectations for a 1.7% growth rate.
Year-on-year, China’s GDP rose 6.8% in the three months to December, in line with expectations.

A separate report showed that China’s industrial production increased by an annualized rate of 5.9% in December, compared to expectations for a 6.0% rise, after a 6.2% gain the previous month.
Meanwhile, investors remained cautious after oil prices fell below $28 per barrel on Monday, the lowest level in 12 years.

The renewed fall in oil prices came as Iranian exports were set to resume after Western sanctions were lifted, fueling fears over increased supplies amid a global supply glut and slowing demand.

Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) surged 2.85% and 4.20%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) rallied 2.36% and 3.21%.
Among peripheral lenders, as Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) jumped 2.40% and 3.98% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 2.06% and 2.46%.

Elsewhere, Renault SA (PA:RENA) shares jumped 1.59% after the French automaker said it will recall more than 15,000 vehicles after an investigation showed their pollution filtering systems need adjustment.

In London, commodity-heavy FTSE 100 surged 2.02%, helped by sharp gains in the mining sector.

Shares in Bhp Billiton (L:BLT) and Antofagasta (L:ANTO) rallied 3.79% and 5.14% respectively, while Anglo American (L:AAL) climbed 8.45% and Glencore (L:GLEN) soared 9.51%.

Financial stocks were also on the upside, as HSBC Holdings (L:HSBA) advanced 2.02% and the Royal Bank of Scotland (L:RBS) gained 2.08%, while Lloyds Banking (L:LLOY) and Barclays (L:BARC) surged 2.60% and 2.66% respectively.

Adding to gains, Royal Dutch Shell (L:RDSa) Plc jumped 1.76% after the company exited a natural-gas project in Abu Dhabi amid declining energy prices.

In the U.S., equity markets pointed to a sharply higher open. The Dow Jones Industrial Average futures pointed to a 1.49% jump, S&P 500 futures a 1.45% rally, while the Nasdaq 100 futures indicated a 1.55% surge.

Share on Google Plus

About Unknown

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.