Investing.com - European stocks edged higher on Monday, in thin year-end trade as investors remained cautious after European Central Bank Governing Council member Jens Weidmann warned last week against keeping interest rates low.
During European morning trade, the EURO STOXX 50 rose 0.24%, France’s CAC 40 added 0.17%, while Germany’s DAX 30 inched up 0.01%.
Trading volumes were thin as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves.
On Friday, ECB Governing Council member Weidmann, who also heads the German Bundesbank, said that keeping interest rates low may endanger political reforms. He added that low inflation shouldn’t be used to justify loose monetary policy.
"We must take care to raise interest rates again in a timely manner should inflation pressures build," Weidmann said.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale rose 0.21% and 0.69%, while Germany's Deutsche Bank gained 0.66%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander advanced 0.25% and 0.44%, while Italy's Intesa Sanpaolo and Unicredit edged up 0.08% and 0.23%.
Another Italian lender, Banca Monte dei Paschi di Siena, tumbled 1.16% after its investors backed the postponement of a stock sale until at least May from the first quarter.
Adding to losses, Sanofi slid 0.66% after the company failed to win U.S. regulatory approval for its multiple sclerosis drug Lemtrada.
In London, commodity-heavy FTSE 100 rose 0.21%, supported by sharp gains in the mining sector.
Shares in Glencore Xstrata jumped 1.43% and Fresnillo rallied 2.01%, while rival company Vedanta Resources led gains on the index with shares surging 2.69%.
Financial stocks were also mostly on the upside, as Lloyds Banking edged up 0.14% and the Royal Bank of Scotland added 0.31%, while Barclays gained 1.09%. HSBC Holdings underperformed however, down 0.38%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.03% gain, S&P 500 futures signaled a 0.01% dip, while the Nasdaq 100 futures indicated a 0.07% rise.
Also Monday, official data showed that Spanish retail sales rose by a seasonally adjusted 1.9% last month, easily surpassing expectations for a 0.3% decline. Retail sales fell by 0.5% in October.
Later in the day, the U.S. was to release industry data on pending home sales.
During European morning trade, the EURO STOXX 50 rose 0.24%, France’s CAC 40 added 0.17%, while Germany’s DAX 30 inched up 0.01%.
Trading volumes were thin as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves.
On Friday, ECB Governing Council member Weidmann, who also heads the German Bundesbank, said that keeping interest rates low may endanger political reforms. He added that low inflation shouldn’t be used to justify loose monetary policy.
"We must take care to raise interest rates again in a timely manner should inflation pressures build," Weidmann said.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale rose 0.21% and 0.69%, while Germany's Deutsche Bank gained 0.66%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander advanced 0.25% and 0.44%, while Italy's Intesa Sanpaolo and Unicredit edged up 0.08% and 0.23%.
Another Italian lender, Banca Monte dei Paschi di Siena, tumbled 1.16% after its investors backed the postponement of a stock sale until at least May from the first quarter.
Adding to losses, Sanofi slid 0.66% after the company failed to win U.S. regulatory approval for its multiple sclerosis drug Lemtrada.
In London, commodity-heavy FTSE 100 rose 0.21%, supported by sharp gains in the mining sector.
Shares in Glencore Xstrata jumped 1.43% and Fresnillo rallied 2.01%, while rival company Vedanta Resources led gains on the index with shares surging 2.69%.
Financial stocks were also mostly on the upside, as Lloyds Banking edged up 0.14% and the Royal Bank of Scotland added 0.31%, while Barclays gained 1.09%. HSBC Holdings underperformed however, down 0.38%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.03% gain, S&P 500 futures signaled a 0.01% dip, while the Nasdaq 100 futures indicated a 0.07% rise.
Also Monday, official data showed that Spanish retail sales rose by a seasonally adjusted 1.9% last month, easily surpassing expectations for a 0.3% decline. Retail sales fell by 0.5% in October.
Later in the day, the U.S. was to release industry data on pending home sales.