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Europe stocks surge to record sharp gains; DAX soars 2.08%

Published 10/13/2010, 11:52 AM
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Investing.com – European stocks ended higher on Wednesday, with markets surging to record sharp gains, as financial sector stocks and commodity-linked shares led gains.

At the close of European trade, the EURO STOXX 50 jumped 2.39%; France’s CAC 40 climbed 2.03%, while Germany's DAX soared 2.08%.

Financial sector shares jumped, with banks leading gains. Stocks in German lender Deutsche Bank soared 4.28%, Banco Santander surged 3.39% and French bank BNP Paribas rose 0.93%.

Elsewhere within the sector, shares in French-based financial service provider AXA climbed 3.52%, Dutch insurers ING Groep rose 3.39% and Lloyd’s Banking Group increased 0.98%.

However, Standard Chartered Plc. fell 1.73%, after the English financial firm said it planned to raise GBP 3.3 billion through a rights offering to raise its capital adequacy ratio. Rivals Barclays declined 0.68% amid concerns they would have to raise further capital to meet new banking regulations.

In London, the commodity-heavy FTSE 100 surged 1.54% as miners advanced amid rising metal prices. Shares in the world’s largest mining company BHP Billiton surged 4.00%, rivals Rio Tinto jumped 4.37% while Vedanta Resources saw its shares soar 4.50%, after it agreed to purchase a 49% stake in India-based Bharat Aluminium Company for an undisclosed fee.

Elsewhere, energy sector stocks gained as crude oil prices surged. Shares in oil giant British Petroleum climbed 1.89%, German power and gas company E.On rose 2.46% while oil and gas producer Petrofac Limited saw its shares soar 4.03% after its stocks were upgraded to ‘overweight’ from ‘equal-weight’ by investment bank Morgan Stanley.

Across the Atlantic, U.S. markets were up: the Dow Jones Industrial Average rose 0.98%, the S&P 500 index gained 0.93%, while the Nasdaq Composite index climbed 0.94%.

Later in the day, Federal Reserve Chairman Ben Bernanke was to speak at an engagement in Pittsburgh.


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