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Europe stocks rally on BNP Paribas, HSBC earnings; DAX up 1.64%

Published 08/02/2010, 07:30 AM
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Investing.com – European stocks were up on Monday, fuelled by upbeat financial sector earnings reports while U.S. stock index futures pointed to a higher open for Wall Street.

During European afternoon trade, the EURO STOXX 50 jumped 1.84%; France’s CAC 40 surged 2.05% while Germany's DAX rose 1.64%.

The CAC's gains came after French banking group BNP Paribas reported a 31% surge in second-quarter profit, beating market expectations. Meanwhile shares of banking giant HSBC jumped 4.92% after it said its first-half net profit more than doubled to USD 6.76 billion.

Sentiment was also boosted after data earlier in the day showed that euro zone manufacturing output rose in July, as German factories preformed strongly.

In London, the commodity heavy FTSE 100 gained 1.90%, with oil giant BP advancing 2.2% as the company looked set to start capping the leaking Gulf of Mexico oil well later in the day.

The outlook for U.S. equity markets, meanwhile, was optimistic: Dow Jones Industrial Average futures indicated an increase of 1.09%, S&P 500 futures pointed to a gain of 1.28% and Nasdaq 100 futures indicated an advance of 1.15%.

Later in the day, the U.S. was to release key manufacturing data, while the traders awaited a speech by U.S. Federal Reserve Chairman Ben Bernanke on the difficulties currently facing the U.S. economy.

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