Investing.com - European stocks opened sharply higher on Thursday, amid fresh expectations for the Federal Reserve to maintain its stimulus program and after the release of mixed economic reports from Germany and France.
During European morning trade, the EURO STOXX 50 jumped 1.11%, France’s CAC 40 surged 1.14%, while Germany’s DAX 30 rallied 0.92%.
Uncertainty over the future of the Fed's stimulus program persisted after Fed Chairman nominee Janet Yellen on Wednesday said the job market and economy are "performing far short of their potential" and there is "more work to do" on recovery.
Meanwhile, preliminary data earlier showed that the French economy contracted by 0.1% in the three months to September, slowing from the 0.5% growth recorded in the second quarter. Economists had forecast growth of 0.1%.
Germany's economy grew by 0.3% in the third quarter, slowing from the 0.7% growth achieved in the second quarter. On a year-over-year basis, Germany’s economy grew 1.1%, beating forecasts for annual growth of 0.7%.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale surged 2.80% and 1.95%, although Germany's Deutsche Bank slipped 0.22%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA climbed 0.55% and 0.63% respectively, while Italy's Unicredit and Intesa Sanpaolo gained 0.72% and 1.10%.
Elsewhere, EADS declined 0.99% after saying third-quarter earnings rose to EUR663 million from EUR526 million a year earlier, coming in slightly below analysts' estimates.
Adding to losses, RWE plunged 5.12% as the German utility company said that recurrent net income will drop to EUR1.3 billion-EUR1.5 billion from around EUR2.4 billion forecast for this year.
In London, FTSE 100 jumped 0.97%, supported by sharp gains in the financial sector.
Shares in HSBC Holdings rose 0.35% and the Royal Bank of Scotland advanced 0.80%, while Lloyds Banking and Barclays rallied 1.02% and 1.34%.
Mining stocks added to gains, as Rio Tinto and BHP Billiton jumped 1.82% and 1.16% respectively, while rival Glencore Xstrata climbed 1.23%.
Among earnings, Burberry surged 2.02% after saying third-quarter revenue advanced 17% to GBP1.03 billion.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.22% gain, S&P 500 futures signaled a 0.29% rise, while the Nasdaq 100 futures indicated a 0.10% fall.
Later in the day, the euro zone was to release a flash estimate of third quarter GDP. The U.S. was release official data on the trade balance, as well as the weekly report on initial jobless claims.
During European morning trade, the EURO STOXX 50 jumped 1.11%, France’s CAC 40 surged 1.14%, while Germany’s DAX 30 rallied 0.92%.
Uncertainty over the future of the Fed's stimulus program persisted after Fed Chairman nominee Janet Yellen on Wednesday said the job market and economy are "performing far short of their potential" and there is "more work to do" on recovery.
Meanwhile, preliminary data earlier showed that the French economy contracted by 0.1% in the three months to September, slowing from the 0.5% growth recorded in the second quarter. Economists had forecast growth of 0.1%.
Germany's economy grew by 0.3% in the third quarter, slowing from the 0.7% growth achieved in the second quarter. On a year-over-year basis, Germany’s economy grew 1.1%, beating forecasts for annual growth of 0.7%.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale surged 2.80% and 1.95%, although Germany's Deutsche Bank slipped 0.22%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA climbed 0.55% and 0.63% respectively, while Italy's Unicredit and Intesa Sanpaolo gained 0.72% and 1.10%.
Elsewhere, EADS declined 0.99% after saying third-quarter earnings rose to EUR663 million from EUR526 million a year earlier, coming in slightly below analysts' estimates.
Adding to losses, RWE plunged 5.12% as the German utility company said that recurrent net income will drop to EUR1.3 billion-EUR1.5 billion from around EUR2.4 billion forecast for this year.
In London, FTSE 100 jumped 0.97%, supported by sharp gains in the financial sector.
Shares in HSBC Holdings rose 0.35% and the Royal Bank of Scotland advanced 0.80%, while Lloyds Banking and Barclays rallied 1.02% and 1.34%.
Mining stocks added to gains, as Rio Tinto and BHP Billiton jumped 1.82% and 1.16% respectively, while rival Glencore Xstrata climbed 1.23%.
Among earnings, Burberry surged 2.02% after saying third-quarter revenue advanced 17% to GBP1.03 billion.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.22% gain, S&P 500 futures signaled a 0.29% rise, while the Nasdaq 100 futures indicated a 0.10% fall.
Later in the day, the euro zone was to release a flash estimate of third quarter GDP. The U.S. was release official data on the trade balance, as well as the weekly report on initial jobless claims.