Investing.com - European stock markets added to strong gains on Wednesday, climbing to the session highs after euro zone finance ministers formally approved a second bailout for Greece.
During European morning trade, the EURO STOXX 50 rose 1.15%, France’s CAC 40 advanced 0.75%, while Germany’s DAX 30 surged 1.25%.
European equities added to gains after Eurogroup head Jean-Claude Juncker said euro zone finance ministers had formally approved the release of a second financial aid package for Greece, worth EUR130 billion.
Stocks were already higher after the open, following an upbeat assessment of the U.S. economy from the Federal Reserve on Tuesday and favorable stress test results for a number of major U.S. banks boosted investor sentiment.
The stress test results boosted European banks higher, with French lenders BNP Paribas and Societe Generale rallying 3.7% and 2.9% respectively, while German banking heavyweights Deutsche Bank and Commerzbank rose 3/05% and 3.4% apiece.
Peripheral lenders also performed strongly, with Italy’s Intesa Sanpaolo gaining 2.55% and Spain’s Banco Santander climbing 1.85%.
Meanwhile, German utility provider E.ON surged 6.65% after reporting stronger-than-expected 2011 earnings. Sales rose 22% to EUR113 billion during the period.
Automakers were broadly higher, boosted by the upbeat global economic outlook. Volkswagen shares were up 3.1%, BMW gained 3.5%, while French automaker Peugeot soared 5%.
Earlier in the day, official data showed that industrial production across the euro zone rose in January for the first time in three months, while the annualized rate of consumer price inflation was unchanged in February and remained above the European Central Bank’s target.
Elsewhere, London’s FTSE 100 rose 0.4% to briefly hit the highest level since July, boosted by gains in lenders. Barclays shares jumped 3.9%, Lloyds Banking Group rose 2.4%, while Royal Bank of Scotland added 2.75%.
Also contributing to gains, shares in Legal & General Group surged 5.6% after the fourth-biggest U.K. insurer boosted its dividend and said 2011 operating profit rose to GBP1.06 billion, above market expectations.
Earlier Wednesday, government data showed that the number of people claiming unemployment benefits rose more-than-expected in February, while the unemployment rate held steady at 8.4%, the highest level since 1995.
In the U.S., equity markets pointed to a flat open, pausing a day after rallying to multi-year highs. Citigroup shares came under pressure following the release of stress test results of the largest U.S. lenders.
The Dow Jones Industrial Average futures pointed to a gain of 0.05%, S&P 500 futures was flat, while the Nasdaq 100 futures also pointed to a flat open.
In a report released earlier, the U.S. Bureau of Economic Analysis said the country’s current account deficit widened to a seasonally adjusted USD124.1 billion in the fourth quarter of last year.
Separate data showed that U.S. import prices rose by a less-than-expected 0.4% in February.
Also Wednesday, Federal Reserve Chairman Ben Bernanke was due to speak.
During European morning trade, the EURO STOXX 50 rose 1.15%, France’s CAC 40 advanced 0.75%, while Germany’s DAX 30 surged 1.25%.
European equities added to gains after Eurogroup head Jean-Claude Juncker said euro zone finance ministers had formally approved the release of a second financial aid package for Greece, worth EUR130 billion.
Stocks were already higher after the open, following an upbeat assessment of the U.S. economy from the Federal Reserve on Tuesday and favorable stress test results for a number of major U.S. banks boosted investor sentiment.
The stress test results boosted European banks higher, with French lenders BNP Paribas and Societe Generale rallying 3.7% and 2.9% respectively, while German banking heavyweights Deutsche Bank and Commerzbank rose 3/05% and 3.4% apiece.
Peripheral lenders also performed strongly, with Italy’s Intesa Sanpaolo gaining 2.55% and Spain’s Banco Santander climbing 1.85%.
Meanwhile, German utility provider E.ON surged 6.65% after reporting stronger-than-expected 2011 earnings. Sales rose 22% to EUR113 billion during the period.
Automakers were broadly higher, boosted by the upbeat global economic outlook. Volkswagen shares were up 3.1%, BMW gained 3.5%, while French automaker Peugeot soared 5%.
Earlier in the day, official data showed that industrial production across the euro zone rose in January for the first time in three months, while the annualized rate of consumer price inflation was unchanged in February and remained above the European Central Bank’s target.
Elsewhere, London’s FTSE 100 rose 0.4% to briefly hit the highest level since July, boosted by gains in lenders. Barclays shares jumped 3.9%, Lloyds Banking Group rose 2.4%, while Royal Bank of Scotland added 2.75%.
Also contributing to gains, shares in Legal & General Group surged 5.6% after the fourth-biggest U.K. insurer boosted its dividend and said 2011 operating profit rose to GBP1.06 billion, above market expectations.
Earlier Wednesday, government data showed that the number of people claiming unemployment benefits rose more-than-expected in February, while the unemployment rate held steady at 8.4%, the highest level since 1995.
In the U.S., equity markets pointed to a flat open, pausing a day after rallying to multi-year highs. Citigroup shares came under pressure following the release of stress test results of the largest U.S. lenders.
The Dow Jones Industrial Average futures pointed to a gain of 0.05%, S&P 500 futures was flat, while the Nasdaq 100 futures also pointed to a flat open.
In a report released earlier, the U.S. Bureau of Economic Analysis said the country’s current account deficit widened to a seasonally adjusted USD124.1 billion in the fourth quarter of last year.
Separate data showed that U.S. import prices rose by a less-than-expected 0.4% in February.
Also Wednesday, Federal Reserve Chairman Ben Bernanke was due to speak.