Forexpros –
Forexpros – European stocks closed solidly higher Friday, as bullish U.S. economic data sparked a global equity rally, as wel as comments by German Chancellor Angela Merkel sparked fresh hopes for progress in the handling of the debt crisis supporting the risk on trade.
During European morning trade, the EURO STOXX 50 advanced 0.61%, France’s CAC 40 rose 0.23%, while Germany’s DAX 30 climbed 0.64%.
Sentiment strengthened after U.S. UoM consumer sentiment rose more-than-expected last month, preliminary data showed on Friday.
In a report, the University of Michigan said that consumer sentiment rose to a seasonally adjusted 73.6, from 72.3 in the preceding month.
Analysts had expected UoM consumer sentiment to rise to 72.4 last month.
Meanwhile, German Chancellor Merkel said European Central Bank President Mario Draghi’s declarations last month to do whatever it takes to save the euro and raising the prospect of buying the bonds of debt-ridden countries, such as Spain and Italy, were “completely in line” with the approach taken by European leaders.
She also called for Europe’s swift fiscal policy integration, saying time was running short.
Investors remained cautious however, as the release of mixed U.S. data on Thursday left investors uncertain over whether the Federal Reserve will soon announce fresh stimulus measures.
Financial stocks were sharply higher, led by Italian lenders Unicredit and Intesa Sanpaolo, up 1.54% and 1.55% respectively, while France’s Societe Generale and BNP Paribas rallied 1.10% and 0.84%.
German lenders also contributed to gains, with Deutsche Bank and Commerzbank adding 0.77% and 0.16%.
Nokia tumbled 1.82% on the other hand, erasing Thursday’s strong gains after the phone company said it plans to unveil, with Microsoft, a smartphone equipped with the U.S. software giant’s Windows 8 operating system, in New York on September 5.
In London, commodity-heavy FTSE 100 rose 0.31%, as U.K. lenders tracked their European counterparts sharply higher.
Barclays led gains, with shares surging 2.43%, followed by the Royal Bank of Scotland, up 1.10%, while Lloyds Banking and HSBC Holdings advanced 1.06% and 0.32% respectively.
U.K. lenders came under media scrutiny on Thursday, following reports the Royal Bank of Scotland, Barclays and HSBC Holdings were among the seven world banks subpoenaed this week in the U.S. investigation into alleged manipulation of Libor.
On the downside, Pennon saw shares tumble 1.47%, even as the water utility and waste management company said in its interim management statement that overall financial performance since March 31, 2012 remains in line with management expectations.
In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a 0.06% rise, S&P 500 futures signaled a 0.05% gain, while the Nasdaq 100 futures indicated a 0.17% increase.
Also Friday, official data showed that producer prices in Germany were unchanged in July, compared to expectations for a 0.4% rise and following a 0.4% decline the previous month.
In the U.S., the Dow traded up 0.13%, the broad based S&P 500 added 0.10% and the tech heavy Nasdaq advanced 0.23%.
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