Investing.com - European stocks were sharply higher on Wednesday, as speculation surrounding possible stimulus measures in China boosted risk appetite.
During European morning trade, the EURO STOXX 50 advanced 2.32%, France’s CAC 40 climbed 2.34%, while Germany’s DAX 30 surged 2.11%.
Market sentiment strengthened after a slowdown in Chinese exports and imports indicated that a recovery in the broader economy remains fragile and may need further government stimulus.
Data on Tuesday showed that Chinese exports slumped 5.5% from a year earlier, although better than forecasts for a decline of 6.0%, while imports plunged 13.8%, far worse than expectations for a drop of 8.2%.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) surged 2.39% and 2.58%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) rallied 1.45% and 2.51%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) soared 2.25% and 2.72% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) jumped 1.93% and 2.24%.
Elsewhere, Repsol (MADRID:REP) SA, Spain’s largest oil company, advanced 1.88% after saying it plans to postpone maintenance at its joint-biggest refinery, fueling speculation that declining crude prices are boosting margins and encouraging European plants to limit routine works.
In London, commodity-heavy FTSE 100 rallied 1.89%, boosted by sharp gains in the mining sector.
Shares in Bhp Billiton (LONDON:BLT) and Rio Tinto (LONDON:RIO) climbed 2.35% and 2.71% respectively, while Anglo American (LONDON:AAL) jumped 3.89% and Glencore (LONDON:GLEN) surged 4.47%.
Financial stocks were also on the upside, as Lloyds Banking (LONDON:LLOY) advanced 1.32% and the Royal Bank of Scotland (LONDON:RBS) gained 2.04%, while Barclays (LONDON:BARC) and HSBC Holdings (LONDON:HSBA) soared 2.92% and 3.38% respectively.
On the downside, GlaxoSmithKline PLC (LONDON:GSK) saw shares tumble 1.32% after a large clinical trial failed to show that the company’s Breo Ellipta inhaler extends life in patients with chronic obstructive pulmonary disease.
In the U.S., equity markets pointed to a sharply higher open. The Dow Jones Industrial Average futures pointed to a 1.35% jump, S&P 500 futures signaled a 1.27% gain, while the Nasdaq 100 futures indicated a 1.58% rally.