Investing.com - European stocks turned broadly higher on Wednesday, supported by the upcoming nomination of Janet Yellen as head of the Federal Reserve, although concerns over a potential U.S. sovereign default still weighed on sentiment.
During European afternoon trade, the EURO STOXX 50 climbed 0.50%, France’s CAC 40 advanced 0.57%, while Germany’s DAX 30 added 0.21%.
Equity markets found some support ahead of Ms. Yellen’s nomination amid expectations that under her leadership Fed policy could remain accommodative for some time. If Ms. Yellen’s nomination is confirmed by the Senate, she will succeed Chairman Ben Bernanke, whose term ends January 31.
But investors remained cautious as a partial U.S. government shutdown dragged on into a second week, with few signs of progress towards a resolution ahead of an October 17 deadline to avoid a U.S. sovereign default.
International Monetary Fund Chief Economist Olivier Blanchard said Tuesday that a prolonged failure to raise the U.S. debt ceiling would "almost certainly derail the recovery".
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale surged 2.18% and 1.73%, while Germany's Deutsche Bank rallied 1.66%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander jumped 1.03% and 1.07% respectively, while Italy's Unicredit and Intesa Sanpaolo gained 0.66% and 2.17%.
Elsewhere, Peugeot Citroen climbed 0.61% following reports China’s Dongfeng Motor is preparing to buy a stake in the French carmaker for USD1.6 billion.
In London, FTSE 100 eased up 0.02%, after data showed that U.K. industrial production fell at the fastest rate in nearly a year in August, rising doubts over the outlook for third quarter growth.
Mining stocks were mixed, as Glencore Xstrata edged up 0.06% and Evraz rose 0.30%, while rivals Polymetal and Vedanta Resources plummeted 2.15% and 4.13% respectively.
Meanwhile, financial stocks were mostly higher. HSBC Holdings gained 0.56% and Barclays jumped 1%, erasing earlier losses, while Lloyds Banking advanced 1.24%.
The Royal Bank of Scotland remained on the downside however, down 0.11%, amid reports the U.K. lender has passed records of a former currency trader’s potentially inappropriate communications with counterparts in other firms to U.K. regulators.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.25% gain, S&P 500 futures signaled a 0.33% increase, while the Nasdaq 100 futures indicated a 0.29% rise.
Investors were awaiting the release of minutes from the Fed’s September meeting later Wednesday, after the U.S. central bank surprised markets with a decision to keep its stimulus program on track.
During European afternoon trade, the EURO STOXX 50 climbed 0.50%, France’s CAC 40 advanced 0.57%, while Germany’s DAX 30 added 0.21%.
Equity markets found some support ahead of Ms. Yellen’s nomination amid expectations that under her leadership Fed policy could remain accommodative for some time. If Ms. Yellen’s nomination is confirmed by the Senate, she will succeed Chairman Ben Bernanke, whose term ends January 31.
But investors remained cautious as a partial U.S. government shutdown dragged on into a second week, with few signs of progress towards a resolution ahead of an October 17 deadline to avoid a U.S. sovereign default.
International Monetary Fund Chief Economist Olivier Blanchard said Tuesday that a prolonged failure to raise the U.S. debt ceiling would "almost certainly derail the recovery".
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale surged 2.18% and 1.73%, while Germany's Deutsche Bank rallied 1.66%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander jumped 1.03% and 1.07% respectively, while Italy's Unicredit and Intesa Sanpaolo gained 0.66% and 2.17%.
Elsewhere, Peugeot Citroen climbed 0.61% following reports China’s Dongfeng Motor is preparing to buy a stake in the French carmaker for USD1.6 billion.
In London, FTSE 100 eased up 0.02%, after data showed that U.K. industrial production fell at the fastest rate in nearly a year in August, rising doubts over the outlook for third quarter growth.
Mining stocks were mixed, as Glencore Xstrata edged up 0.06% and Evraz rose 0.30%, while rivals Polymetal and Vedanta Resources plummeted 2.15% and 4.13% respectively.
Meanwhile, financial stocks were mostly higher. HSBC Holdings gained 0.56% and Barclays jumped 1%, erasing earlier losses, while Lloyds Banking advanced 1.24%.
The Royal Bank of Scotland remained on the downside however, down 0.11%, amid reports the U.K. lender has passed records of a former currency trader’s potentially inappropriate communications with counterparts in other firms to U.K. regulators.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.25% gain, S&P 500 futures signaled a 0.33% increase, while the Nasdaq 100 futures indicated a 0.29% rise.
Investors were awaiting the release of minutes from the Fed’s September meeting later Wednesday, after the U.S. central bank surprised markets with a decision to keep its stimulus program on track.