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Europe stocks move higher on financials; DAX up 0.40%

Published 08/23/2010, 07:23 AM
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Investing.com – European stocks moved higher on Monday, as financial shares continued to perform strongly and miners advanced, while U.S. futures indices also pointed towards a higher open on Wall Street.

During European afternoon trade, the EURO STOXX 50 gained 0.78%; France’s CAC 40 advanced 0.87% while Germany's DAX was up 0.40%.

Earlier in the day, data showed that the euro zones manufacturing PMI fell more-than-expected in August while the services PMI declined in line with expectations.

In the financial sector, Shares of Royal Bank of Scotland gained 1.70%, while shares in French lender Natixis jumped 3.14%.

Meanwhile, shares in African insurer Old Mutual jumped 4.55% following reports that HSBC bank is in talks aimed at buying a controlling stake in Nedbank Group, which is owned by the insurer. Shares in HSBC surged 0.84%.

Meanwhile, shares in Britain's largest insurer, Aviva rose 3.18%.

In London, the commodity heavy FTSE 100 rose 0.79% with miners emerging as the top performers.

Shares in Rio Tinto gained 1.69% while shares in BHP Billiton jumped 2.06% amid speculation that Australian election results may result in a proposed mining tax being scrapped.

Meanwhile, crude oil prices gained 0.02% to hit USD 74.06 a barrel.

The outlook for U.S. equity markets, meanwhile, was optimistic: Dow Jones Industrial Average futures indicated a gain of 0.39%, S&P 500 futures pointed to a rise of 0.53% and Nasdaq 100 futures indicated an increase of 0.61%.

Later in the day, high ranking U.S. Federal Reserve, Thomas Hoenig was due to address a Congress committee in Washington. His comments would be closely watched for possible clues to the future direction of U.S. monetary policy.

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