Forexpros – European stocks turned broadly higher on Monday, following a wobbly open, as the prospect for action by the European Central Bank to stem the long running euro zone debt crisis bolstered the financial sector, while strong gains in the auto sector also lent support.
During European afternoon trade, the EURO STOXX 50 was up 0.92%, France’s CAC 40 climbed 0.64%, while Germany’s DAX 30 gained 0.60%.
In Germany, shares of automaker BMW were up 2.6%, while Volkswagen and Daimler rallied 1.80% and 2.59% respectively.
Meanwhile, shares of German insurance giant Allianz jumped 1.81%. On Friday, the company said net profit rose more than 23% in the second quarter, to reach EUR1.3 billion, boosted partly by its life and health divisions.
The auto sector was also leading gains in France, with shares in Renault rising 2.44%, and shares of Peugeot up 3.87%, helping the CAC40 index erase earlier losses.
Financial stocks were also sharply higher, with shares in France’s Societe Generale and BNP Paribas up 1.94% and 4.41% respectively.
In London, the FTSE 100 was up 0.31%. Gains were limited as shares of utility Centrica fell 1.33% after Deutsche Bank analysts cut it to hold from buy.
Shares of Barclays bank advanced 2.69% , tracking wider gains in the financial sector.
Elsewhere, retailer Marks & Spencer Group gained 2.61% on the back of reports that it is the target of a possible GBP6 billion bid, following a 50% slump in its shares since 2007.
In the U.S., equity markets pointed to a modestly higher open. The Dow Jones Industrial Average futures pointed to a 0.27% rise, S&P 500 futures signaled a 0.40% gains, while the Nasdaq 100 futures indicated a 0.48% increase.
Later in the day, Federal Reserve Chairman Ben Bernanke was to speak; his comments would be closely watched by investors.
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