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European stocks open higher on miners, earnings; DAX up 0.63%

Published 10/25/2010, 05:44 AM
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Investing.com – European stocks advanced after the open on Monday, boosted by rising commodity prices and strong earnings reports, while U.S. futures indexes pointed to a higher open on Wall Street.

During European morning trade, the EURO STOXX 50 was up 0.37%; France’s CAC 40 rose 0.54%; while Germany's DAX gained 0.63%.

In earnings news, German automaker Volkswagen AG saw its shares surge 4.98% after it said its nine-month operating profit rose to EUR 4.8 billion, compared to EUR 1.5 billion from a year earlier.

Elsewhere in the auto sector, BMW saw its shares gain 0.88%, Daimler stocks rose 0.51% while French automaker Renault jumped 1.52%.

Markets were also lifted by news that luxury goods firm LVMH Moet Hennessy Louis Vuitton bought a 17.1% stake in rivals Hermes International for EUR 1.45 billion. Following the news, shares in LVMH jumped 4.32%, while Hermes saw its shares soar 7.52%.

In London, the commodity-heavy FTSE 100 rose 0.68% as shares in the commodity sector jumped amid rising crude oil and metal prices amid broad dollar weakness.

Shares in the world’s largest mining group BHP Billiton rose 2.72%, rivals Rio Tinto saw shares jump 2.77%, while shares in Xstrata, the world’s fourth-largest copper producer soared 3.18% as copper prices climbed to a 27-month high.

The outlook for U.S. equity markets, meanwhile, was upbeat ahead of earnings reports from electronics retailer RadioShack and semiconductor manufacturer Texas Instruments.

The Dow Jones Industrial Average futures indicated a rise of 0.51%, S&P 500 futures pointed to an increase of 0.57% and Nasdaq 100 futures indicated a gain of 0.48%.

Later in the day, the U.S. was to publish official data on existing home sales, while Federal Reserve Chairman Ben Bernanke was to speak at a public engagement.


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