Investing.com - European stock markets pushed higher on Monday, supported by strong gains in the auto sector but investors remained cautious as fears over a potential Greek exit from the euro zone persisted.
During European afternoon trade, the EURO STOXX 50 rose 0.36%, France’s CAC 40 climbed 0.89%, while Germany’s DAX 30 jumped 1.04%.
Market sentiment firmed up after a weekend summit of the G8 nations saw leaders affirm that they want Greece to remain in the euro zone and pledge to take measures to shore up growth in their economies.
But investors remained cautious after leaders failed to reach an agreement on how to calm market turmoil stemming from the crisis in the region.
Uncertainty over the outcome of Greece’s June 17 elections has sparked fears over Greece’s ability to honor its financial commitments and its possible exit from the euro zone.
Meanwhile, concerns over the health of Spain’s banking sector also weighed, pushing the yield on Spanish 10-year bonds to 6.29% earlier.
Auto makers were among the session’s top gainers as shares in French group Renault soared 4.61% after UBS added the French carmaker to its key call list, while rival company Peugeot climbed 4.69%.
Financial stocks also remained broadly higher. Shares in Italy’s Intesa Sanpaolo surged 2.26% and Dutch lender ING Group jumped 1.75%, while Deutsche Bank and BNP Paribas added 0.69% and 0.23% respectively.
Meanwhile, Spanish builder Sacyr Vallehermoso rallied 8.59% after former Chairman Luis del Rivero finished selling an additional 3% stake in the company on May 18.
French insurer Axa also added to gains, with shares advancing 1.73%, after announcing earlier the launch of the Axa WF Global Strategic Bond fund, due to invest in government bonds, inflation-linked bonds, investment-grade debt, high-yield debt and emerging market debt.
In London, FTSE 100 rose 0.73%, after industry data showed that house price inflation in the U.K. was flat in May.
Barclays led gains in the financial sector, with shares surging 1.99%, after the lender said it plans to sell its entire holding in BlackRock Inc. through a registered offering and related buyback by BlackRock. Barclays Capital, Morgan Stanley and Bank of America Merrill Lynch are acting as joint book runners in the offering.
Meanwhile, Lloyds Banking saw shares jump 1.97% and HSBSC Holdings rose 0.42%, while the Royal Bank of Scotland declined 0.44%.
Mining stocks were also on the upside, as shares in Anglo American advanced 1.08%, while Bhp Billiton climbed 1.25%. Rio Tinto, on the other hand, saw shares ease 0.05%, as rising costs and calls for higher returns to shareholders lead to a more cautious approach over the company’s iron ore operations in Australia.
Elsewhere, Ryanair tumbled 2.40% after Europe’s largest discount airline forecast said its net income will probably be in the range of EUR400 million to EUR440 million euros this year amid higher fuel costs. The company still posted a 25% increase in net income to EUR502.6 million euros in the 12 months to March 31.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to rise of 0.62%, S&P 500 futures signaled a 0.69% gain, while the Nasdaq 100 futures indicated a 0.76% increase.
Markets were also eyeing a first meeting between German Finance Minister Wolfgang Schaeuble and his newly installed French counterpart, Pierre Moscovici, in Berlin later Monday, as European Union leaders were preparing for a summit in Brussels on May 23.
During European afternoon trade, the EURO STOXX 50 rose 0.36%, France’s CAC 40 climbed 0.89%, while Germany’s DAX 30 jumped 1.04%.
Market sentiment firmed up after a weekend summit of the G8 nations saw leaders affirm that they want Greece to remain in the euro zone and pledge to take measures to shore up growth in their economies.
But investors remained cautious after leaders failed to reach an agreement on how to calm market turmoil stemming from the crisis in the region.
Uncertainty over the outcome of Greece’s June 17 elections has sparked fears over Greece’s ability to honor its financial commitments and its possible exit from the euro zone.
Meanwhile, concerns over the health of Spain’s banking sector also weighed, pushing the yield on Spanish 10-year bonds to 6.29% earlier.
Auto makers were among the session’s top gainers as shares in French group Renault soared 4.61% after UBS added the French carmaker to its key call list, while rival company Peugeot climbed 4.69%.
Financial stocks also remained broadly higher. Shares in Italy’s Intesa Sanpaolo surged 2.26% and Dutch lender ING Group jumped 1.75%, while Deutsche Bank and BNP Paribas added 0.69% and 0.23% respectively.
Meanwhile, Spanish builder Sacyr Vallehermoso rallied 8.59% after former Chairman Luis del Rivero finished selling an additional 3% stake in the company on May 18.
French insurer Axa also added to gains, with shares advancing 1.73%, after announcing earlier the launch of the Axa WF Global Strategic Bond fund, due to invest in government bonds, inflation-linked bonds, investment-grade debt, high-yield debt and emerging market debt.
In London, FTSE 100 rose 0.73%, after industry data showed that house price inflation in the U.K. was flat in May.
Barclays led gains in the financial sector, with shares surging 1.99%, after the lender said it plans to sell its entire holding in BlackRock Inc. through a registered offering and related buyback by BlackRock. Barclays Capital, Morgan Stanley and Bank of America Merrill Lynch are acting as joint book runners in the offering.
Meanwhile, Lloyds Banking saw shares jump 1.97% and HSBSC Holdings rose 0.42%, while the Royal Bank of Scotland declined 0.44%.
Mining stocks were also on the upside, as shares in Anglo American advanced 1.08%, while Bhp Billiton climbed 1.25%. Rio Tinto, on the other hand, saw shares ease 0.05%, as rising costs and calls for higher returns to shareholders lead to a more cautious approach over the company’s iron ore operations in Australia.
Elsewhere, Ryanair tumbled 2.40% after Europe’s largest discount airline forecast said its net income will probably be in the range of EUR400 million to EUR440 million euros this year amid higher fuel costs. The company still posted a 25% increase in net income to EUR502.6 million euros in the 12 months to March 31.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to rise of 0.62%, S&P 500 futures signaled a 0.69% gain, while the Nasdaq 100 futures indicated a 0.76% increase.
Markets were also eyeing a first meeting between German Finance Minister Wolfgang Schaeuble and his newly installed French counterpart, Pierre Moscovici, in Berlin later Monday, as European Union leaders were preparing for a summit in Brussels on May 23.