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European stocks remain sharply higher, E.Z. talks ahead; Dax up 2.34%

Published 07/08/2013, 07:11 AM
Updated 07/08/2013, 07:13 AM
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Investing.com - European stocks remained sharply higher on Monday, as last week's comments by European Central Bank President Mario Draghi continued to support, although expectations for a near-term end to the U.S. Federal Reserve's stimulus program persisted.

During European afternoon trade, the EURO STOXX 50 surged 2.04%, France’s CAC 40 jumped 1.74%, while Germany’s DAX 30 rallied 2.34%.

Stocks remained supported after ECB President Draghi said last week that the bank expects to maintain interest rates at current or lower levels for an “extended” period of time.

In Germany, official data showed that industrial production fell 1% in May, compared to expectations for a 0.5% decline.

A separate report showed that Germany posted a smaller-than-expected trade surplus of EUR14.1 billion in May, as exports decreased by 4.8% on a year-over-year basis and imports fell by 2.6%.

Analysts had expected a trade surplus of EUR17.5 billion.

Financial stocks pushed higher, as French lenders BNP Paribas and Societe Generale surged 2.27% and 2.87%, while Germany's Deutsche Bank jumped 1.78%.

Peripheral lenders added to gains, with Spanish banks BBVA and Banco Santander rallying 1.07% and 2% respectively, while Italy's Intesa Sanpaolo and Unicredit advancing 1.49% and 1.76%.

Elsewhere, Novartis jumped 1.41% after saying a psoriasis treatment met all its primary and secondary endpoints in a phase-three study.

In London, FTSE 100 climbed 0.88%, as U.K. lenders tracked their European counterparts higher.

Shares in HSBC Holdings advanced 0.70% and Lloyds Banking rallied 2.11%, while Barclays and the Royal Bank of Scotland surged 2.14% and 2.42%.

Bloomberg reported earlier that former Standard Chartered Chairman Mervyn Davies is working to assemble an investor group to bid for part of the U.K. government’s stake in Lloyds Banking.

Meanwhile, mining stocks were mixed, as BHP Billiton and Anglo American advanced 0.54% and 1.42% respectively, while Rio Tinto and Vedanta Resources plummeted 0.97% and 2.23%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.48% rise, S&P 500 futures signaled a 0.60% gain, while the Nasdaq 100 futures indicated a 0.65% climb.

Later in the day, the eurogroup of euro zone finance ministers were to hold talks in Brussels.

In addition, ECB President Mario Draghi was to testify before the committee on Economic and Monetary Affairs in the European Parliament in Brussels.


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