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European stocks recover from ECB statement, eyes on data; Dax closed

Published 10/03/2014, 03:33 AM
European stocks open higher with E.Z., U.S. data in focus
UK100
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FCHI
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DE40
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STOXX50
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HSBA
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BARC
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LLOY
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EZJ
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NWG
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AIRF
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BNPP
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SOGN
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AIR
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BBVA
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SAN
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VED
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RIO
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BHPB
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ISP
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CRDI
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ESZ24
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1YMZ24
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NQZ24
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GLEN
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Investing.com - European stocks were higher on Friday, as equity markets recovered from the European Central Bank's policy statement on Thursday and as investors eyed upcoming economic reports from the euro zone and the U.S.

During European morning trade, France’s CAC 40 advanced 0.76%, while the DJ Euro Stoxx 50 and Germany’s DAX remained closed in observance of German unity day.

European equities had come under pressure on Thursday as the ECB held back from announcing additional easing measures in spite of growing concerns over the threat of deflation in the euro area.

ECB President Mario Draghi said the bank's new covered bond operation will start in October and its asset purchase program will begin in the fourth quarter of this year. The programs are to run for two years and will substantially increase the ECB’s balance sheet, he said.

Earlier Friday, Markit research group said Spain's services purchasing managers' index fell to 55.8 last month from a reading of 58.1 in August, compared to expectations for a decline to 57.1.

Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) gained 0.73% and 0.93%.

Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) jumped 1% and 1.32% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) advanced 0.15% and 1.16%.

Elsewhere, Airbus Group (PARIS:AIR) climbed 0.99% following reports it pitched its double-decker flagship A380 jet as ideally suited for the Muslim pilgrimage to Mecca, in a move to boost flagging sales.

In London, FTSE 100 advanced 0.71%, led by Easyjet (LONDON:EZJ), up 5.47% after saying full-year profit climbed by at least 20% as Europe’s second-biggest discount carrier targeted corporate traffic and benefited from strikes at network rival Air France KLM (PARIS:AIRF).

Financial stocks added to gains, as the Royal Bank of Scotland (LONDON:RBS) and Barclays (LONDON:BARC) jumped 1.06% and 1.62% respectively, while Lloyds Banking (LONDON:LLOY) rallied 1.65% and HSBC Holdings (LONDON:HSBA) surged 2.52%.

In the mining sector, stocks were also on the upside. Shares in Glencore Xstrata (LONDON:GLEN) gained 0.72% and Bhp Billiton (LONDON:BLT) advanced 0.75%, while Rio Tinto (LONDON:RIO) climbed 0.74% and Vedanta Resources (LONDON:VED) rallied 1.82%.

In the U.S., equity markets pointed to a higher open. The Dow 30 futures pointed to a 0.33% rise, S&P 500 futures signaled a 0.41% increase, while the NASDAQ 100 futures indicated a 0.40% gain.

Later in the day, the euro zone was to release data on retail sales and service sector activity.

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