Investing.com - European stock markets were broadly higher on Wednesday, joining a global equity rally, as an upbeat assessment of the U.S. economy from the Federal Reserve and favorable stress test results for a number of major U.S. banks boosted investor sentiment.
During European morning trade, the EURO STOXX 50 jumped 1.05%, France’s CAC 40 gained 0.7%, while Germany’s DAX 30 surged 1%.
U.S. stocks had their best day of 2012 on Tuesday, closing at multi-year highs after the Federal Reserve said it saw signs of an improving economy and expected the unemployment rate to keep falling. The Fed also said strains in the global financial markets have eased.
Further boosting sentiment, the Fed made a surprise announcement of the results of its annual stress test for banks. JP Morgan Chase and 14 other financial institutions passed. Four, including Citigroup, failed.
The stress test results boosted European banks higher, with German banking heavyweights Deutsche Bank and Commerzbank jumping 3.15% and 2.85% respectively, while French lenders BNP Paribas and Societe Generale added 3% and 2.5% apiece.
Peripheral lenders were also broadly higher, with Italy’s Intesa Sanpaolo gaining 2.55% and Spain’s Banco Santander climbing 2.15%.
Meanwhile, German utility provider E.ON surged 6% after reporting stronger-than-expected 2011 earnings. Sales rose 22% to EUR113 billion during the period.
Also in Germany, luxury clothing maker Hugo Boss soared 8.5% after saying that 2012 operating profit may rise by more than 10%.
Investors were looking forward to euro zone data on consumer price inflation, as well as data on industrial production.
Elsewhere, London’s commodity-heavy FTSE 100 rose 0.45% to hit the highest level since July, boosted by gains in lenders.
Barclays shares jumped 3.25%, Lloyds Banking Group rose 2.15%, while HSBC Holdings and Royal Bank of Scotland added 1% and 1.8% respectively.
Also contributing to gains, shares in Legal & General Group surged 4.9% after the fourth-biggest U.K. insurer boosted its dividend and said 2011 operating profit rose to GBP1.06 billion, above market expectations.
Meanwhile, shares in Home Retail Group rallied 5.5% after JP Morgan upgraded the stock to ‘overweight’ from ‘underweight’.
Later Wednesday, the U.K. was to release official data on the claimant count change and the unemployment rate.
In the U.S., equity markets pointed to a modestly higher open after closing at multi-year highs on Tuesday.
The Dow Jones Industrial Average futures pointed to a gain of 0.1%, S&P 500 futures eased up 0.1%, while the Nasdaq 100 futures indicated a 0.1% gain.
Later in the day, the U.S. was to produce official data on the country’s current account, as well as data on import prices and crude oil stockpiles. In addition, Federal Reserve Chairman Ben Bernanke was also due to speak.
During European morning trade, the EURO STOXX 50 jumped 1.05%, France’s CAC 40 gained 0.7%, while Germany’s DAX 30 surged 1%.
U.S. stocks had their best day of 2012 on Tuesday, closing at multi-year highs after the Federal Reserve said it saw signs of an improving economy and expected the unemployment rate to keep falling. The Fed also said strains in the global financial markets have eased.
Further boosting sentiment, the Fed made a surprise announcement of the results of its annual stress test for banks. JP Morgan Chase and 14 other financial institutions passed. Four, including Citigroup, failed.
The stress test results boosted European banks higher, with German banking heavyweights Deutsche Bank and Commerzbank jumping 3.15% and 2.85% respectively, while French lenders BNP Paribas and Societe Generale added 3% and 2.5% apiece.
Peripheral lenders were also broadly higher, with Italy’s Intesa Sanpaolo gaining 2.55% and Spain’s Banco Santander climbing 2.15%.
Meanwhile, German utility provider E.ON surged 6% after reporting stronger-than-expected 2011 earnings. Sales rose 22% to EUR113 billion during the period.
Also in Germany, luxury clothing maker Hugo Boss soared 8.5% after saying that 2012 operating profit may rise by more than 10%.
Investors were looking forward to euro zone data on consumer price inflation, as well as data on industrial production.
Elsewhere, London’s commodity-heavy FTSE 100 rose 0.45% to hit the highest level since July, boosted by gains in lenders.
Barclays shares jumped 3.25%, Lloyds Banking Group rose 2.15%, while HSBC Holdings and Royal Bank of Scotland added 1% and 1.8% respectively.
Also contributing to gains, shares in Legal & General Group surged 4.9% after the fourth-biggest U.K. insurer boosted its dividend and said 2011 operating profit rose to GBP1.06 billion, above market expectations.
Meanwhile, shares in Home Retail Group rallied 5.5% after JP Morgan upgraded the stock to ‘overweight’ from ‘underweight’.
Later Wednesday, the U.K. was to release official data on the claimant count change and the unemployment rate.
In the U.S., equity markets pointed to a modestly higher open after closing at multi-year highs on Tuesday.
The Dow Jones Industrial Average futures pointed to a gain of 0.1%, S&P 500 futures eased up 0.1%, while the Nasdaq 100 futures indicated a 0.1% gain.
Later in the day, the U.S. was to produce official data on the country’s current account, as well as data on import prices and crude oil stockpiles. In addition, Federal Reserve Chairman Ben Bernanke was also due to speak.