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European stocks higher amid EU talks; Dax up 0.36%

Published 02/08/2013, 03:35 AM
Updated 02/08/2013, 03:36 AM
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Investing.com - European stocks were higher on Friday, as a budget ceiling agreement between European Union leaders lifted market sentiment, although comments by European Central Bank President Mario Draghi continued to weigh.

During European morning trade, the EURO STOXX 50 advanced 0.48%, France’s CAC 40 climbed 0.62%, while Germany’s DAX 30 rose 0.36%.

Sentiment found support after EU leaders agreed on the first-ever cuts in the bloc’s budget, setting a 2014-2020 spending ceiling of EUR960 billion, down from an original proposal of EUR1.047 trillion and less than the EUR994 billion spent in the current budget cycle.

Investor confidence had weakened on Thursday, after ECB President Draghi said that economic weakness in the euro area would persist during the early part of 2013 but said the economy should start to recover “later” in the year.

Financial stocks were broadly higher, as shares in French lenders Societe Generale and BNP Paribas jumped 1.32% and 1.33%, while Germany's Deutsche Bank and Commerzbank added 0.27% and 0.55% respectively.

Earlier in the day, Bank of America advised buying BNP Paribas shares, saying the lender’s results should confirm it has enough capital to support growth.

Alcatel-Lucent added to gains, climbing 1.06%, after Morgan Stanley raised its rating on the shares to "overweight" from "underweight".

On the downside, French car maker Peugeot tumbled 1.05% after saying that it’s writing down the automotive division’s property, plants and other assets by EUR3.89 billion.

In London, FTSE 100 climbed 0.57%, as U.K. lenders tracked their European counterparts higher.

Shares in Lloyds Banking edged up 0.15% and Barclays advanced 0.78%, while the Royal Bank of Scotland and HSBC Holdings rallied 0.77% and 0.96%.

Mining giants Rio Tinto and BHP Billiton were also on the upside, climbing 0.61% and 0.79%, while copper producers Xstrata and Kazakhmys advanced 0.69% and 1.15% respectively.

Meanwhile, Imperial Tobacco plunged 1.02%, after Berenberg Bank reaffirmed their hold rating on the shares.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.05% rise, S&P 500 futures signaled a 0.06% increase, while the Nasdaq 100 futures indicated a 0.06% gain.

Later in the day, the U.S. was to release official data on the trade balance.


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