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European stocks open higher, eyes on E.Z. inflation data; Dax up 0.73%

Published 02/25/2016, 03:34 AM
© Reuters.  European stocks gain ground ahead of CPI report
UK100
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FCHI
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HSBA
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LLOY
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Investing.com - European stocks opened higher on Thursday, after oil prices regained some ground late Wednesday and as investors eyed the release of final euro zone inflation data due later in the day.

During European morning trade, the EURO STOXX 50 jumped 1.41%, France’s CAC 40 rallied 1.52%, while Germany’s DAX 30 climbed 0.73%.

Oil prices steadied above $31 a barrel but concerns over a global supply glut persisted after after weekly stockpile data released on Wednesday showed that U.S. oil inventories rose to an all-time high last week.

Meanwhile, investors were eyeing the release of final euro zone inflation data due later in the session, which could give a further indication on whether the European Central Bank will implement additional easing measures at its March policy meeting.

Financial stocks were broadly higher, as Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) rallied 1.75% and 2.18%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) added 0.10% and 0.23%.

Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) gained 0.92% and 1.70% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 2.21% and 2.56%.

On the dowside, Deutsche Telekom (DE:DTEGn) tumbled 1.48% even as the German telecoms operator reported better-than-expected fourth-quarter earnings.

Anheuser-Busch Inbev SA (BR:ABI) saw shares dive 3.58% after the Belgian brewer said fourth-quarter earnings came in below analysts’ estimates and forecast challenging markets in Brazil and China.

In London, FTSE 100 rallied 1.37%, led by gains in the financial sector.

Shares in Lloyds Banking (L:LLOY) soared 9.92% after the lender set aside another £2.1 billion in the fourth quarter of 2015 to cover compensation for customers mis-sold loan insurance. Lloyds also reported a 5% increase in its underlying full-year profit.

Meanwhile, rivals Barclays (L:BARC) and HSBC Holdings (L:HSBA) jumped 2.19% and 2.40% respectively, while the Royal Bank of Scotland (L:RBS) surged 3.83%.

Adding to gains, BT Group (L:BT) rallied 2.87% after the telecoms giant was reportedly ordered by the Britain’s communications watchdog to open its cable network Openreach to rivals.

In the mining sector, stocks were mixed. Anglo American (L:AAL) gained 2.66% and Glencore (L:GLEN) advanced 3.78%, while Randgold (L:RRS) ressources dropped 0.53% and Rio Tinto (L:RIO) plummeted 2.17%.

In the U.S., equity markets pointed to a to lower open. The Dow Jones Industrial Average futures pointed to a 0.20% fall, S&P 500 futures a 0.25% loss, while the Nasdaq 100 futures indicated a 0.21% slide.

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