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European stocks push higher on U.S. optimism; Dax jumps 1.33%

Published 10/10/2013, 07:17 AM
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Investing.com - European stocks pushed higher on Thursday, supported by fresh hopes of progress in ongoing U.S. budget talks, as well as by Janet Yellen's nomination at the head of the Federal Reserve.

During European afternoon trade, the EURO STOXX 50 rallied 1.61%, France’s CAC 40 gained 1.51%, while Germany’s DAX 30 jumped 1.33%.

Hopes that the partial U.S. government shutdown may soon end received a boost from news that House Republican leaders were to hold their first meeting with President Barack Obama since the shutdown began later on Thursday.

President Obama has demanded Republicans raise the U.S. debt ceiling and reopen the government before negotiations on future fiscal policy can take place. The U.S. risks a sovereign debt default if the government borrowing limit is not raised by 17 October.

In addition, President Barack Obama announced on Wednesday his nomination of Federal Reserve Vice Chairwoman Janet Yellen to head the U.S. central bank, easing uncertainty over U.S. monetary policy.

Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale surged 3.42% and 3.89%, while Germany's Deutsche Bank climbed 1.59%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander jumped 2.98% and 3.34% respectively, while Italy's Unicredit and Intesa Sanpaolo soared 3.09% and 4.36%.

Elsewhere, Tryg A/S slid 0.39%, erasing earlier gains posted after the Danish insurer posted quarterly profit that beat estimates.

Adding to losses, Givaudan tumbled 1.85% as the fragrance maker posted third-quarter sales that missed forecasts.

In London, FTSE 100 jumped 1.05%, as U.K. lenders continued to track their European counterparts higher, while the Bank of England kept its benchmark interest rate unchanged in October and announced no change to its asset purchase facility program.

Shares in HSBC Holdings advanced 1.76% and Barclays jumped 2.28%, while Lloyds Banking and the Royal Bank of Scotland rallied 1.87% and 2.99%.

In the mining sector, stocks remained mostly higher as Rio Tinto climbed 1.61% and Glencore Xstrata gained 2.34%, while Polymetal jumped 1.68%.

Also on the upside, Hays Plc surged 2.08% after the recruitment agency said first-quarter net fees rose 2% from last year on a comparable basis.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.87% gain, S&P 500 futures signaled a 0.99% jump, while the Nasdaq 100 futures indicated a 0.94% increase.


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