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European stocks open higher amid easing hopes; Dax up 0.76%

Published 04/08/2016, 03:37 AM
© Reuters.  European stocks gain ground on ECB comments
UK100
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DE40
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STOXX50
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HSBA
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BARC
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BP
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LLOY
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SHEL
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BNPP
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RIO
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Investing.com - European stocks opened higher on Friday, supported by hopes for fresh easing measures by the European Central Bank and rising oil prices.

During European morning trade, the EURO STOXX 50 climbed 0.89%, France’s CAC 40 gained 0.66%, while Germany’s DAX 30 advanced 0.76%.

European equities strengthened after senior ECB officials reiterated on Thursday that they are prepared to inject more stimulus if necessary.

The ECB’s chief economist, Peter Praet, said the bank was prepared to do more if the euro zone economy was hit by fresh shocks.

The comments were echoed by ECB Vice-President Vito Constancio who said in a speech to the European Parliament that the bank will continue to do whatever it takes to pursue its price stability objective.

Global equity markets were also boosted by rising oil prices on Friday.

Energy stocks were broadly higher, as French oil and gas major Total SA (PA:TOTF) rallied 1.45% and Italy’s ENI (MI:ENI) SpA jumped 1.87%, while Norwegian rival Statoil ASA (OL:STL) was up 0.32%.

Financial stocks were also on the upside, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) advanced 0.99% and 1.18%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) surged 2.06% and 2.25%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) soared 2.34% and 4.72% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) climbed 0.76% and 0.83%.

Elsewhere, Bouygues (PA:BOUY) shares were up 1.43% after the French telecom operator installed its first 700 MHz antenna in Paris on Thursday.

In London, commodity-heavy FTSE 100 advanced 0.70%, boosted by sharp gains in the energy and mining sectors.

Oil and gas major BP (LON:BP) saw shares rally 1.80%, while rival company Royal Dutch Shell (LON:RDSa) jumped 1.50%.

Mining giants Bhp Billiton (LON:BLT) and Glencor gained 2.40% and 2.73% respectively, while Rio Tinto (LON:RIO) climbed 2.86% and Anglo American (LON:AAL) surged 2.98%.

In the financial sector, stocks were also mostly higher. HSBC Holdings (LON:HSBA) advanced 0.71% and Lloyds Banking (LON:LLOY) gained 0.86%, while Barclays (LON:BARC) and the Royal Bank of Scotland (LON:RBS) rallied 1.31% and 1.45% respectively.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.49% gain, S&P 500 futures a 0.57% climb, while the Nasdaq 100 futures indicated a 0.65% increase.

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