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Europe stocks close higher on miners, financials; DAX up 0.69%

Published 09/13/2010, 11:57 AM
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Investing.com – European stocks closed higher on Monday with financial stocks emerging as the leading performers as markets reacted positively to new global banking regulations.

At the close of European trade, the EURO STOXX 50 advanced 0.81%; France’s CAC 40 surged 1.10% and Germany's DAX climbed 0.69%.

On Sunday, the Basel Committee on Banking Supervision increased the amount of capital banks must set aside against potential losses, but gave lenders up to eight years to comply with the new regulations.

Shares in French lender Credit Agricole jumped 5.93%, while counterpart Societe Generale shares gained 4.90%. Meanwhile, shares in Europe's largest lender HSBC advanced 2.71%.

Earlier Monday, the European Commission revised its forecast for growth in the euro zone up by 1.7%, from a previous estimate of 0.9%, but warned that growth is likely to slow in the second half as the world economy hits a "soft patch".

Commenting on the report, Olli Rehn, the EU's economic and monetary affairs commissioner said "This gives reason for cautious optimism, despite a more uncertain global environment."

In London, the commodity heavy FTSE 100 was up 1.07% as miners led gains boosted by strong Chinese economic data. Shares in BHP Billiton, the world's largest miners gained 2.55%, Rio Tinto jumped 2.63% and copper producers Kazakhmys surged 5.21%.

Across the Atlantic, U.S. markets opened higher: the Dow Jones Industrial Average was up 0.65%; the S&P 500 index climbed 0.98% and the Nasdaq Composite index jumped 1.58%.

Later in the day, the U.S. was to release official data on its federal budget balance.

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