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European stocks open higher with eyes on BoE; DAX up 0.73%

Published 08/04/2016, 03:33 AM
© Reuters.  European stocks gain ground ahead of BoE statement
UK100
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FCHI
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DE40
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HSBA
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LLOY
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AV
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Investing.com - European stocks opened higher on Thursday, as investors eyed the Bank of England’s upcoming policy decision, due later in the trading session, amid growing expectations for a rate cut.

During European morning trade, the EURO STOXX 50 gained 0.73%, France’s CAC 40 climbed 0.45%, while Germany’s DAX 30 advanced 0.73%.

Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rallied 1.57% and 2.33%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) surged 1.86% and 2.01%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) jumped 1.76% and 4.55% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 1.78% and 1.77%.

Elsewhere, Siemens AG (DE:SIEGn) climbed 2.81% after the engineering firm reported better than expected third-quarter results and raised its guidance for 2016.

On the downside, Merck KGaA (DE:MRK) tumbled 1.28% even though the German drugs and chemical maker raised its sales and earnings forecast for 2016 and posting a more than 18% increase in second-quarter net sales.

Nokia (HE:NOKIA) added to losses, with shares diving 4.92% after the network equipment maker reported lower than expected second-quarter earnings and said sales dropped 11% year-on-year.

In London, FTSE 100 inched up 0.04%, led by Inmarsat PLC (LON:ISA), whose shares soared 3.65% after the satellite operator reported an increase in second-quarter net profit and left its full-year guidance unchanged.

Aviva (LON:AV) was also one of the best performers on the index, with shares up 3.90% after the insurance company reported a 13% climb in first-half profit and it increased its dividend.

In the financial sector, stocks were broadly higher as the Royal Bank of Scotland (LON:RBS) edged up 0.10% and Lloyds Banking (LON:LLOY) advanced 0.87%, while Barclays (LON:BARC) jumped 1.05% and HSBC Holdings (LON:HSBA) surged 2.17%.

Meanwhile, mining stocks mostly lower on the commodity-heavy index. Shares in Rio Tinto (LON:RIO) tumbled 1.49% and Rio Tinto lost 1.50%, while Randgold Resources (LON:RRS) dove 7.96% after saying its second-quarter profit from mining was flat.

In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.02% uptick, S&P 500 futures a 0.01% dip, while the Nasdaq 100 futures indicated a 0.11% slip.

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