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European stocks rise on China GDP, U.K. speech cancelled; Dax up 0.05%

Published 01/18/2013, 03:52 AM
Updated 01/18/2013, 03:53 AM
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Investing.com - European stocks were higher on Friday, boosted by data showing that China's economy accelerated for the first time in two years and as U.K. Prime Minister David Cameron cancelled a speech set to outline the country's future within the European Union.

During European morning trade, the EURO STOXX 50 rose 0.20%, France’s CAC 40 added 0.22%, while Germany’s DAX 30 inched up 0.05%.

Market sentiment improved after official data showed that China's gross domestic product rose 7.9% in the fourth quarter from a year earlier, compared with expectations for a 7.8% rise, while a separate report showed that industrial production in China rose more-than-expected in December.

In the U.K., political pressure has recently mounted on British Prime Minister David Cameron to renegotiate elements of the country’s EU membership, amid growing expectations for a referendum on the issue, but not before the 2015 general election.

Financial stocks were broadly higher, as shares in French lenders Societe Generale and BNP Paribas advanced 0.49% and 1.27%, while Germany's Deutsche Bank and Commerzbank rose 0.24% and 1.27% respectively.

Peripheral lenders added to gains, with Italian banks Intesa Sanpaolo and Unicredit climbing 0.67% and 1.15%, while Spain's Banco Santander and BBVA jumped 0.93% and 1.17%.

Among earnings, ASML Holding rallied 2.29% after reporting fourth quarter net income of EUR297.7 million euros after the close Wednesday, up from EUR284.7 million euros last year.

In London, commodity-heavy FTSE 100 rose 0.29%, boosted by sharp gains in mining stocks.

Mining giants BHP Billiton and Rio Tinto saw shares advance 0.61% and 1.67%, while rival Evraz surged 1.54%.

Oil and gas major Anglo American was also on the upside, rising 0.62%, while BP trended lower on the other hand, with shares sliding 0.30%.

In the financial sector, stocks were mixed. Shares in HSBC Holdings dipped 0.01% and the Royal Bank of Scotland declined 0.78%, while Barclays and Lloyds Banking added 0.11% and 0.19% respectively.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.04% gain, S&P 500 futures signaled a 0.06% rise, while the Nasdaq 100 futures indicated a 0.11% loss.

Later in the day, the U.S. was to release preliminary data from the University of Michigan on consumer sentiment.


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