Investing.com – European stocks extended an early rally to move higher on Tuesday, led by gains in the commodities sector after comments by Australia's central bank diminished fears of a slowdown in global growth.
During European afternoon trade, the EURO STOXX 50 soared 3.26%; France’s CAC 40 rose 3.2% and Germany's DAX climbed 2.48%.
Late Monday in its rate statement, the Reserve Bank of Australia said that the global economy had continued to expand, albeit unevenly, with growth in Asia remaining strong and signs emerging from China that growth there was now developing at a more sustainable pace.
The banking and commodities sectors led the rally as BHP Billiton rose 4.3% and Rio Tinto gained 5.2%. In the banking sector Barclays rose 5.09% and Credit Agricole was up 5.07%.
However uncertainty over the regions banking sectors' stress tests cast a cloud over markets.
Earlier in the day, Reuter's reported that European Central Bank president Jean-Claude Trichet was due to meet with the heads of major European banks to discuss the results of bank stress tests ahead of their publication later in the month.
In London, the commodity heavy FTSE 100 gained 2.39% as BP Plc rose 2.5% after the Royal Bank of Scotland Group recommended the shares.
The outlook for U.S. equity markets, meanwhile, was optimistic: Dow Jones Industrial Average futures indicated an increase of 0.81%, S&P 500 futures pointed to a gain of 0.94% and Nasdaq 100 futures indicated a rise of 1.36%.
Later Tuesday, the U.S. was to produce closely watched report on its services sector which was expected to show smaller than expected growth in June.
During European afternoon trade, the EURO STOXX 50 soared 3.26%; France’s CAC 40 rose 3.2% and Germany's DAX climbed 2.48%.
Late Monday in its rate statement, the Reserve Bank of Australia said that the global economy had continued to expand, albeit unevenly, with growth in Asia remaining strong and signs emerging from China that growth there was now developing at a more sustainable pace.
The banking and commodities sectors led the rally as BHP Billiton rose 4.3% and Rio Tinto gained 5.2%. In the banking sector Barclays rose 5.09% and Credit Agricole was up 5.07%.
However uncertainty over the regions banking sectors' stress tests cast a cloud over markets.
Earlier in the day, Reuter's reported that European Central Bank president Jean-Claude Trichet was due to meet with the heads of major European banks to discuss the results of bank stress tests ahead of their publication later in the month.
In London, the commodity heavy FTSE 100 gained 2.39% as BP Plc rose 2.5% after the Royal Bank of Scotland Group recommended the shares.
The outlook for U.S. equity markets, meanwhile, was optimistic: Dow Jones Industrial Average futures indicated an increase of 0.81%, S&P 500 futures pointed to a gain of 0.94% and Nasdaq 100 futures indicated a rise of 1.36%.
Later Tuesday, the U.S. was to produce closely watched report on its services sector which was expected to show smaller than expected growth in June.