Investing.com - European stocks were higher on Monday, following the results of Spanish bank stress tests on Friday, although investors remained concerned over the handling of the country's financial troubles.
During European morning trade, the EURO STOXX 50 climbed 0.93%, France’s CAC 40 jumped 1.02%, while Germany’s DAX 30 surged 1.10%.
The Bank of Spain announced Friday that the recapitalization needs of Spanish banks amounted to EUR59.3 billion, broadly in line with market expectations.
Investors remained cautious however, as the Spanish government said the effort to clean up an ailing banking system will widen its budget gap and increase its debt load.
Markets were also eyeing the outcome of Moody's rating agency's latest review of Spain's sovereign rating, which may see it downgraded to junk status.
Financial stocks were broadly higher, as shares in French lenders Societe Generale and BNP Paribas rose 0.68% and 0.84%, while Germany's Deutsche Bank and Commerzbank rallied 1.92% and 1.37% respectively.
The world’s second-largest tiremaker, Michelin gained after 1.94% after UBS AG upgraded the stock to buy from neutral.
On the downside, Nokia, the Finnish phonemaker tumbled 1% as Credit Suisse cut the stock to underperform from neutral.
In London, FTSE 100 advanced 0.90%, as U.K. lenders tracked their European counterparts sharply higher.
Shares in Barclays surged 2.57% and Lloyds Banking rallied 1.70%, while HSBC Holdings and the Royal Bank of Scotland advanced 1.60% and 1.67%.
Mining companies added to gains, as shares in Rio Tinto and BHP Billiton climbed 0.60% and 1.22%, while copper producers Xstrata and Kazakhmys gained 2.24% and 1.23% respectively.
Earlier Monday, Xstrata's board recommended shareholders vote in favor of a USD33 billion takeover offer Glencore International.
Oil and gas stocks were also broadly higher, as shares in Anglo American advanced 2.13% and BP rose 0.26%
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.36% rise, S&P 500 futures signaled a 0.29% increase, while the Nasdaq 100 futures indicated a 0.37% gain.
Also Monday, data showed that that Spain’s manufacturing purchasing managers' index rose to 44.6 in September, from 44.0 the previous month. Analysts had expected Spain’s manufacturing PMI to rise to 44.5 last month.
Later in the day, the euro zone was to release revised data on manufacturing activity, as well as official data on the unemployment rate throughout the region.
The U.S. was to publish a report by the Institute for Supply Management on manufacturing PMI, while Federal Reserve Chairman Ben Bernanke was due to speak at the Economic Club of Indiana, in Indianapolis.
During European morning trade, the EURO STOXX 50 climbed 0.93%, France’s CAC 40 jumped 1.02%, while Germany’s DAX 30 surged 1.10%.
The Bank of Spain announced Friday that the recapitalization needs of Spanish banks amounted to EUR59.3 billion, broadly in line with market expectations.
Investors remained cautious however, as the Spanish government said the effort to clean up an ailing banking system will widen its budget gap and increase its debt load.
Markets were also eyeing the outcome of Moody's rating agency's latest review of Spain's sovereign rating, which may see it downgraded to junk status.
Financial stocks were broadly higher, as shares in French lenders Societe Generale and BNP Paribas rose 0.68% and 0.84%, while Germany's Deutsche Bank and Commerzbank rallied 1.92% and 1.37% respectively.
The world’s second-largest tiremaker, Michelin gained after 1.94% after UBS AG upgraded the stock to buy from neutral.
On the downside, Nokia, the Finnish phonemaker tumbled 1% as Credit Suisse cut the stock to underperform from neutral.
In London, FTSE 100 advanced 0.90%, as U.K. lenders tracked their European counterparts sharply higher.
Shares in Barclays surged 2.57% and Lloyds Banking rallied 1.70%, while HSBC Holdings and the Royal Bank of Scotland advanced 1.60% and 1.67%.
Mining companies added to gains, as shares in Rio Tinto and BHP Billiton climbed 0.60% and 1.22%, while copper producers Xstrata and Kazakhmys gained 2.24% and 1.23% respectively.
Earlier Monday, Xstrata's board recommended shareholders vote in favor of a USD33 billion takeover offer Glencore International.
Oil and gas stocks were also broadly higher, as shares in Anglo American advanced 2.13% and BP rose 0.26%
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.36% rise, S&P 500 futures signaled a 0.29% increase, while the Nasdaq 100 futures indicated a 0.37% gain.
Also Monday, data showed that that Spain’s manufacturing purchasing managers' index rose to 44.6 in September, from 44.0 the previous month. Analysts had expected Spain’s manufacturing PMI to rise to 44.5 last month.
Later in the day, the euro zone was to release revised data on manufacturing activity, as well as official data on the unemployment rate throughout the region.
The U.S. was to publish a report by the Institute for Supply Management on manufacturing PMI, while Federal Reserve Chairman Ben Bernanke was due to speak at the Economic Club of Indiana, in Indianapolis.