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European stocks advance on automakers, miners; DAX gains 0.81%

Published 11/24/2010, 06:07 AM
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Investing.com – European stocks were up on Wednesday, as gains in automakers and miners outweighed losses in the financial sector, while U.S. futures indexes pointed to a higher open on Wall Street.

During European morning trade, the EURO STOXX 50 gained 0.35%; France’s CAC 40 advanced 0.37%; while Germany's DAX climbed 0.81%.

Shares in automakers led gains after Porsche said third quarter net earnings jumped by 86% to EUR 395 million, as sales in the quarter surged 80% to EUR 2.1 billion. The company saw shares soar 4.11%. 

Elsewhere in the sector, shares in luxury automaker BMW climbed 1.91%, rivals Daimler saw shares jump 2.18%, while shares in Volkswagen leaped 1.01%.

Earlier in the day, data showed that German business confidence rose unexpectedly in November, surging to the highest level since German reunification.

But shares in the financial sector declined as fears over euro zone sovereign debt contagion intensified after Standard and Poor's downgraded its sovereign rating on Ireland, and as Portugal experienced its biggest labor strike in 22 years.

France’s second-largest lender Societe Generale saw shares tumble 1.69%, shares in Spain’s largest bank Banco Santander dropped 1.53%, while shares in Britain’s second-largest lender Barclays plunged 2.18%.

Meanwhile, shares in the world’s largest maker of business application software SAP fell 1.27% after a U.S. federal jury said the company must pay USD 1.3 billion to rivals Oracle for copyright infringement. 

Elsewhere, in London, the commodity-heavy FTSE 100 gained 0.72% as metal prices advanced. Shares in the world’s fourth-largest copper producer Xstrata jumped 1.79%, rivals Kazakhmys saw shares surge 1.51%, whiles shares in mining giant Rio Tinto climbed 1.08%.

The outlook for U.S. equity markets, meanwhile, was upbeat ahead of earnings reports from the world’s largest manufacturer of agricultural equipment Deere & Company.

The Dow Jones Industrial Average futures pointed to a gain of 0.17%, S&P 500 futures indicated a rise of 0.21% and Nasdaq 100 futures indicated an increase of 0.19%.

Later in the day, the U.S. was to release a flurry of data ahead of the Thanksgiving holiday, with a weekly report on initial jobless claims as well as data on personal spending, durable goods orders and new home sales. The country was also to publish revised data on consumer sentiment and inflation expectations.


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