Investing.com - European stocks extended gains on Monday, following upbeat comments by European Union Commissioner Olli Rehn, although concerns over the handling of the debt crisis in Spain remained.
During European afternoon trade, the EURO STOXX 50 surged 1.25%, France’s CAC 40 rallied 1.52%, while Germany’s DAX 30 jumped 1.19%.
Sentiment strengthened after EU Commissioner Rehn said that fiscal consolidation in Spain needs to continue with determination, and that he doesn't expect the country's bank recapitlization to affect the structural deficit. He added that Spain's 2012 deficit target is within reach.
The EU commission is due to give its opinion on Spains's 2013 budget on November 7.
The comments camed after the Bank of Spain announced Friday that the recapitalization needs of Spanish banks amounted to EUR59.3 billion, broadly in line with market expectations.
But investors remained cautious as Moody's rating agency's was to give its latest review of Spain's sovereign rating, which may see it downgraded to junk status.
Financial stocks remained broadly higher, as shares in French lenders Societe Generale and BNP Paribas jumped 1.36% and 1.46%, while Germany's Deutsche Bank and Commerzbank rallied 1.89% and 1.58% respectively.
Meanwhile, the world’s second-largest tiremaker, Michelin surged 3.51%, extending earlier gains, after UBS upgraded the stock to buy from neutral.
On the downside, Alcatel-Lucent tumbled 3.26%, as UBS downgraded the French phone-equipment supplier to sell from neutral, saying that the company’s third-quarter losses may be wider than expected.
In London, commodity-heavy FTSE 100 advanced 1.13%, boosted by sharp gains in mining and oil stocks, while data showed that U.K. manufacturing activity declined more-than-expected in September.
Oil and gas major Anglo American led gains, with shares soaring 3.33%, while rival BP saw shares inch up 0.02%.
Mining giants also remained sharply higher, as shares in Rio Tinto and BHP Billiton climbed 0.40% and 1.51%, while copper producers Xstrata and Kazakhmys surged 2.41% and 1.97% respectively.
Earlier Monday, Xstrata's board recommended shareholders vote in favor of a USD33 billion takeover offer Glencore International.
Elsewhere, U.K. lenders remained on the upside, with shares in the Royal Bank of Scotland climbing 2.08% and HSBC Holdings advancing 2.20%, while Lloyds Banking and Barclays rallied 2.32% and 2.53%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.52% rise, S&P 500 futures signaled a 0.47% increase, while the Nasdaq 100 futures indicated a 0.59% gain.
Also Monday, official data showed that the unemployment rate in the euro zone remained unchanged at 11.4% in August, in line with expectations.
The report came after revised data showed that the manufacturing purchasing managers' index for the single currency bloc improved to 46.1 in September from 46.0 the previous month.
Analysts had expected the index to remain unchanged in September.
During European afternoon trade, the EURO STOXX 50 surged 1.25%, France’s CAC 40 rallied 1.52%, while Germany’s DAX 30 jumped 1.19%.
Sentiment strengthened after EU Commissioner Rehn said that fiscal consolidation in Spain needs to continue with determination, and that he doesn't expect the country's bank recapitlization to affect the structural deficit. He added that Spain's 2012 deficit target is within reach.
The EU commission is due to give its opinion on Spains's 2013 budget on November 7.
The comments camed after the Bank of Spain announced Friday that the recapitalization needs of Spanish banks amounted to EUR59.3 billion, broadly in line with market expectations.
But investors remained cautious as Moody's rating agency's was to give its latest review of Spain's sovereign rating, which may see it downgraded to junk status.
Financial stocks remained broadly higher, as shares in French lenders Societe Generale and BNP Paribas jumped 1.36% and 1.46%, while Germany's Deutsche Bank and Commerzbank rallied 1.89% and 1.58% respectively.
Meanwhile, the world’s second-largest tiremaker, Michelin surged 3.51%, extending earlier gains, after UBS upgraded the stock to buy from neutral.
On the downside, Alcatel-Lucent tumbled 3.26%, as UBS downgraded the French phone-equipment supplier to sell from neutral, saying that the company’s third-quarter losses may be wider than expected.
In London, commodity-heavy FTSE 100 advanced 1.13%, boosted by sharp gains in mining and oil stocks, while data showed that U.K. manufacturing activity declined more-than-expected in September.
Oil and gas major Anglo American led gains, with shares soaring 3.33%, while rival BP saw shares inch up 0.02%.
Mining giants also remained sharply higher, as shares in Rio Tinto and BHP Billiton climbed 0.40% and 1.51%, while copper producers Xstrata and Kazakhmys surged 2.41% and 1.97% respectively.
Earlier Monday, Xstrata's board recommended shareholders vote in favor of a USD33 billion takeover offer Glencore International.
Elsewhere, U.K. lenders remained on the upside, with shares in the Royal Bank of Scotland climbing 2.08% and HSBC Holdings advancing 2.20%, while Lloyds Banking and Barclays rallied 2.32% and 2.53%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.52% rise, S&P 500 futures signaled a 0.47% increase, while the Nasdaq 100 futures indicated a 0.59% gain.
Also Monday, official data showed that the unemployment rate in the euro zone remained unchanged at 11.4% in August, in line with expectations.
The report came after revised data showed that the manufacturing purchasing managers' index for the single currency bloc improved to 46.1 in September from 46.0 the previous month.
Analysts had expected the index to remain unchanged in September.