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European stocks open higher with eyes on inflation data; Dax up 0.43%

Published 08/31/2017, 03:36 AM
© Reuters.  European stocks climb as sentiment continues to improve, inflation data ahead
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Investing.com - European stocks opened higher on Thursday, as sentiment continued to improve and as markets awaited the release of euro zone inflation data due later in the trading session.

During European morning trade, the EURO STOXX 50 rose 0.32%, France’s CAC 40 advanced 0.36%, while Germany’s DAX 30 gained 0.43% by 03:35 a.m. ET (07:35 GMT).

Concerns over geopolitical tensions eased after U.S. President Donald Trump's reaction to the North Korean latest missile test on Monday was seen as more moderate than in the past. The U.S. President did warn that "all options are on the table" however.

Market participants also continued to monitor developments in Houston and the Gulf Coast, amid uncertainty over the impact of hurricane Harvey on the oil sector.

Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) climbed 0.58% and 1.041%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) gained 0.15% and 1.07%.

Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) rose 0.12% and 0.36% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 0.82% and 0.74%.

Bouygues (PA:BOUY) added to gains, with shares up 1.40% after the French telecom group confirmed its earnings outlook for the year and a reported 3% sales increase to €15.16 billion during the first half of 2017.

On the downside, Pernod Ricard (PA:PERP) shares tumbled 1.96% even after the distiller said it net profits increased by 13% in its latest fiscal year and sales surpassed €9 billion for the first time.

In London, commodity-heavy FTSE 100 rose 0.24%, boosted by sharp gains in the mining sector.

Shares in Rio Tinto (LON:RIO) jumped 1.28% and Glencore (LON:GLEN) rallied 1.32%, while Anglo American (LON:AAL) and Antofagasta (LON:ANTO) surged 1.83% and 2.46% respectively.

In the financial sector, stocks were mixed. Barclays (LON:BARC) added 0.13% and HSBC Holdings (LON:HSBA) rose 0.27%, while the Royal Bank of Scotland (LON:RBS) dipped 0.01% and Lloyds Banking (LON:LLOY) eased 0.09%.

Meanwhile, Provident Financial (LON:PFG) was one of the worst performers on the index, with shares down 2.19%, after it was decided this week that the stock would be demoted from the FTSE 100.

The decision came after the subprime lender warned last week of impending heavy losses, which resulted in a significant drop in its share price.

Market participants were also focusing on the third round of Article 50 negotiations between the U.K. and the European Union, which was set to end on Thursday.

UK Prime Minister Theresa May was visiting Japan this week to discuss post-Brexit trade ties.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.17% gain, S&P 500 futures signaled a 0.10% rise, while the Nasdaq 100 futures indicated a 0.15% increase.

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