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Europe stocks up in a broad rally; DAX climbs 1.96%

Published 07/06/2010, 05:56 AM
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Investing.com – European stocks were up on Tuesday, with the commodity and banking sectors emerging as the top performers, as trading volumes grew ahead of the re-opening of U.S. markets after a holiday.

During European morning trade, the EURO STOXX 50 soared 2.62%; France’s CAC 40 rose 2.7% and Germany's DAX climbed 1.96%.

Miners were among the top performers, with Rio Tinto rising 2.9% and Xstrata climbing 3.5%, while the badly hit banking sector recovered, with BNP Paribas adding 1.4% and Banco Santander rising 2%.

Earlier in the day, Reuter's reported that European Central Bank president Jean-Claude Trichet was to meet with the heads of Europe's main banks ahead of the publication of banking sector stress test results later in the month.

In London, the FTSE 100 gained 2.03% as EasyJet rose 2.2% after the low cost carrier said its passenger numbers rose 9.4% in June.

The outlook for U.S. equity markets, meanwhile, was optimistic: Dow Jones Industrial Average futures indicated an increase of 0.67%, S&P 500 futures pointed to a gain of 0.74% and Nasdaq 100 futures indicated a rise of 1.05%.

Later Tuesday, the U.S. was to produce a closely watched report on its services sector which was expected to show smaller than expected growth in June.

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