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European stocks rise as Fed rate hike worries subside; Dax up 0.65%

Published 10/15/2015, 03:31 AM
© Reuters.  Frankfurt Stock Exchange
UK100
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FCHI
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STOXX50
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HSBA
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Investing.com - European stocks opened higher on Thursday, as the previous session's weak U.S. data dampened expectations for an upcoming rate hike by the Federal Reserve.

During European morning trade, the EURO STOXX 50 advanced 0.77%, France’s CAC 40 gained 0.53%, while Germany’s DAX 30 climbed 0.65%.

The U.S. Commerce Department reported on Wednesday that retail sales increased by 0.1% last month, missing expectations for a gain of 0.2%.

Data also showed that producer price inflation in the U.S. fell for the first time in five months in September.

The weak economic reports fuelled expectations that a U.S. rate hike could be delayed for an even longer period than expected.

Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rallied 1.24% and 0.99%, while Germany's Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) gained 0.56% and 0.30%.

Among peripheral lenders, Italy's Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) advanced 0.79% and 0.38% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) climbed 0.88% and 0.95%.

Elsewhere, Hennes & Mauritz added 0.10% after the Swedish clothing retailer reported a sales increase of 11% in September, compared to the same month last year.

On the downside, Syngenta plummeted 2.95% after the Swiss agricultural chemicals firm reported a 12% year-on-year decline in the third quarter to $2.6 billion.

In London, FTSE 100 advanced 0.61%, led by Unilever (L:ULVR), up 3.44%, after the company said third-quarter turnover rose 9.4% year-on-year to €13.4 billion.

Mining stocks were also broadly higher on the commodity-heavy index. Shares in Rio Tinto (L:RIO) rallied 1.76% and Anglo American (L:AAL) jumped 1.95%, while Bhp Billiton (L:BLT) and Glencore (L:GLEN) surged 2.13% and 2.88% respectively.

Meanwhile, Burberry shares dove 11.17% after the luxury retailer reported a 0.2% increase in first-half retail sales, missing analysts' forecasts.

In the financial sector, stocks were mixed. Barclays (L:BARC) dropped 0.65%, while HSBC Holdings (L:HSBA) and the Royal Bank of Scotland (L:RBS) gained 0.60% and 1% respectively. Lloyds Banking (L:LLOY) held steady, with shares up just 0.04%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.55% gain, S&P 500 futures signaled a 0.63% increase, while the Nasdaq 100 futures indicated a 0.70% climb.

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