Investing.com - European stocks opened higher on Friday, as markets digested most of Thursday’s high risk events, although chances of a hung parliament in the U.K. still weighed.
During European morning trade, the EURO STOXX 50 gained 0.79%, France’s CAC 40 climbed 0.89%, while Germany’s DAX 30 advanced 0.72%.
In testimony to a Senate committee on Thursday, former FBI director James Comey accused President Donald Trump of firing him to try to undermine his investigation into possible collusion by the Trump campaign team with Russia's alleged efforts to influence the 2016 presidential election.
Separately, the European Central Bank on Thursday cut its forecast for inflation this year to 1.5%, down from 1.7% in March.
The forecast came after the central bank left interest rates unchanged in a widely expected move.
Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) jumped 1.40% and 1.55%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) advanced 0.76% and 0.97%.
Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) rallied 1.48% and 1.62% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) rose 0.33% and 0.46%.
Elsewhere, Deutsche Lufthansa AG (BE:LHABy) shares slipped 0.20% after the airliner said it will be increasing short-haul hold luggage fees, besides adding a £4 charge on bags booked via Global Distribution Systems.
Passengers flying with Lufthansa, Austrian and Swiss airlines on an ‘Economy Light’ ticket do not have free baggage allowance included in their fare.
E.ON SE (DE:EONGn) NA (SIX:EONGnEUR) added to losses, as shares declined 0.46% even as Goldman Sachs (NYSE:GS) said it expected double digit share price increases for the utility over the coming year after a court ruled this week that the German state should refund billions of dollars in taxes to the company.
In London, FTSE 100 advanced 0.88% even as U.K. Prime Minister Theresa May's Conservative Party lost its parliamentary majority in Thursday’s general election, potentially disrupting Brexit negotiations.
May faced calls to leave the government on Friday after the election left no single party with a clear claim to power just 10 days ahead of the start of Brexit negotiations.
Centrica (LON:CNA) was one of the top performers on the index, with shares surging 3.37% after the company struck a deal to sell its entire Canadian oil and gas exploration and production business to Hong Kong-listed MIE Holdings Corp.
Mining stocks added to gains, as Glencore (LON:GLEN) jumped 1.64% and BHP Billiton (LON:BLT) rallied 2.07%, while rival Fresnillo (LON:FRES) climbed 2.58%.
Meanwhile, financial stocks were mostly lower. Shares in Barclays (LON:BARC) slid 0.68% and Lloyds Banking (LON:LLOY) tumbled 2.49%, while the Royal Bank of Scotland (LON:RBS) plummeted 2.92%. HSBC Holdings (LON:HSBA) overperformed, as shares rallied 1.66%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.20% increse, S&P 500 futures showed a 0.18% gain, while the Nasdaq 100 futures indicated a 0.12% rise.