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European stocks higher ahead of data; Dax up 0.26%

Published 06/12/2013, 03:42 AM
Updated 06/12/2013, 03:43 AM
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Investing.com - European stocks were higher on Wednesday, ahead of the release of euro zone industrial production data later in the day, while speculation over a near-term end to the Federal Reserve's stimulus program persisted.

During European morning trade, the EURO STOXX 50 gained 0.48%, France’s CAC 40 climbed 0.53%, while Germany’s DAX 30 added 0.26%.

On Tuesday, Germany's Finance Minister Wolfgang Schauble defended the European Central Bank’s bond purchasing scheme at a hearing in Germany’s constitutional court into the legality of the program.

Meanwhile, markets remained jittery amid ongoing speculation over whether the Fed will begin to unwind its bond-buying program in the coming months.

Financial stocks were broadly higher, as shares in French lender BNP Paribas climbed 0.60%, while Germany's Deutsche Bank and Commerzbank rose 0.31% and 0.15%.

Peripheral lenders added to gains, with Spanish banks BBVA and Banco Santander advancing 0.74% and 0.75% respectively, while Italy's Intesa Sanpaolo and Unicredit climbed 0.61% and 0.91%.

On the downside, Inditex dropped 0.62% after the Spanish retailer reported a 1.4% increase in first-quarter net profit to EUR438 million, below market expectations, as prolonged cold weather across Europe delayed spring sales.

In London, FTSE 100 inched up 0.02%, supported by gains in financial stocks.

U.K. lenders tracked their European counterparts higher, as shares in Barclays edged up 0.03% and the Royal Bank of Scotland jumped 1.66%, while HSBC Holdings and Lloyds Banking rose 0.21% and 0.54% respectively.

Mining companies were also on the upside. BHP Billiton and Rio Tinto gained 0.97% and 0.96%, while Anglo American advanced 0.87%.

Meanwhile, Severn Trent led losses, diving 8%, after Borealis Infrastructure Management nd its Kuwaiti-British partners late Tuesday abandoned their GBP5.3 billion bid for the U.K. water utility as the offer deadline expired.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.46% gain, S&P 500 futures signaled a 0.50% increase, while the Nasdaq 100 futures indicated a 0.50% rise.

Later in the day, the euro zone was to release official data on industrial production.


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