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European stocks open higher ahead of ECB statement; Dax up 0.35%

Published 01/21/2016, 03:33 AM
© Reuters.  European stocks regain some ground with eyes on ECB
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Investing.com - European stocks opened higher on Thursday, as investors awaited the European Central Bank’s upcoming policy statement amid ongoing concerns over the oil rout.

During European morning trade, the EURO STOXX 50 advanced 0.70%, France’s CAC 40 climbed 0.53%, while Germany’s DAX 30 rose 0.35%.

Markets were still jittery after oil prices dropped to the lowest level since 2003 on Wednesday, falling below $28 per barrel after the International Energy Agency said in a report that the supply glut in markets looks set to last until at least late 2016.

Energy stocks regained some ground after plummeting on Wednesday. French oil and gas major Total SA (PA:TOTF) rose 0.34% and Italy’s ENI (MI:ENI) advanced 0.49%, while Norwegian rival Statoil ASA (OL:STL) rallied 1.69%.

Financial stocks were also broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) gained 0.33% and 0.69%, while Germany’s Commerzbank (DE:CBKG) jumped 0.99%.

Deutsche Bank (DE:DBKGn) underperformed however, with shares plunging 5.09% after the lender said it expects to post a €2.1 billion loss for the fourth quarter.

Among peripheral lenders, as Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) surged 1.61% and 3.78% respectively, while Spanish bank Banco Santander (MC:SAN) added 0.16%.

Elsewhere, Volkswagen (DE:VOWG_p) AG jumped 1.47% after the carmaker’s powerful labor union backed Chief Executive Officer Matthias Mueller’s handling of the diesel-emissions scandal.

In London, FTSE 100 climbed 0.81%, led by Pearson (L:PSON) Plc, whose shares soared 6.84% after the education company announced a £320 million restructuring plan that will cut one tenth of its workforce.

Mining stocks added to gains on the commodity-heavy index. Shares in Anglo American (L:AAL) and Rio Tinto (L:RIO) rallied 1.15% and 1.61%, while Glencore (L:GLEN) jumped 1.90% and Bhp Billiton (L:BLT) surged 2.75%.

In the financial sector, stocks were also mostly higher as Barclays (L:BARC) gained 0.63% and the Royal Bank of Scotland (L:RBS) climbed 0.65%, while HSBC Holdings (L:HSBA) advanced 1.17%. Lloyds Banking (L:LLOY) underperformed with shares slipping 0.19%.

In earnings news, SABMiller (L:SAB) Plc reported quarterly sales that beat analysts’ projections, helped by growing demand in Latin America and Africa. Shares only inched up 0.06% following the news.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.27% fall, S&P 500 futures a 0.20% slip, while the Nasdaq 100 futures indicated a 0.33% loss.

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