Forex Pros – European stock markets were broadly higher on Thursday, as shares in the financial and raw material sectors led gains, while U.S. futures indexes pointed to a higher open on Wall Street.
During European morning trade, the EURO STOXX 50 rose 0.22%, France’s CAC 40 gained 0.35%, while Germany’s DAX 30 edged 0.18% higher.
The Financial Times reported earlier that European Financial Stability Facility Chief Executive Officer Klaus Regling said China was “clearly interested” in buying Portuguese bailout bonds when the EFSF sells them in June.
Meanwhile, Fitch Ratings said that the exposure of German banks to Greece was manageable, boosting lenders across the region.
Commerzbank and Deutsche Bank saw shares jump 2.35% and 1.2% respectively. Shares in Spanish banking giant Banco Santander advanced 1.9%, while Europe’s largest financial group BNP Paribas added 1.4%.
Shares in Swiss dental implant maker Nobel Biocare soared 7.35% after Morgan Stanley upgraded the stock two notches to “overweight” from “underweight”.
French tire maker Michelin saw shares gain 1.3% after JP Morgan upgraded the company, saying a 20% drop in natural rubber prices makes tire producers the best medium-term prospects in the automotive sector.
In London, the commodity-heavy FTSE 100 rose 0.4% as commodity producers led gains after Deutsche Bank upgraded the raw material sector, saying it expected stocks in the sector to deliver a 20% return on equity this year.
Shares in BHP Billiton climbed 1.1%, while copper producer Xstrata gained 1.3% after Deutsche Bank named them as its top choices in the sector.
On the downside, luxury retailer Burberry saw shares drop 2.5% after it reported full-year earnings that were broadly in line with market expectations.
The company said annual earnings rose 39% to GBP297.9 million however the company failed to upgrade its earnings outlook for the current fiscal year, disappointing investors.
The outlook for U.S. equity markets, meanwhile, was upbeat. The Dow Jones Industrial Average futures pointed to a gain of 0.3%, S&P 500 futures indicated a rise of 0.32%, while the Nasdaq 100 futures added 0.15%.
Later in the day, the U.S. was to publish revised government data on first quarter economic growth as well as a weekly report on initial jobless claims.
ForexPros.com
