Forexpros – European stock markets extended gains on Tuesday, as sentiment was supported by upbeat economic data from the euro zone and a relatively successful Spanish government bond auction.
During European afternoon trade, the EURO STOXX 50 surged 1.36%, France’s CAC 40 jumped 1.30%, while Germany’s DAX 30 climbed 1.06%.
Sentiment found support earlier after a closely watched auction of Spanish short-term government bonds saw borrowing costs almost double, but the country raised the full targeted amount of EUR3 billion.
Spain’s Treasury sold EUR2.09 billion worth of 12-month government bonds at an average yield of 2.62%, up from 1.41% at a previous auction, and EUR1.09 billion of 18-month bills at an average yield of 2.93%, up from 1.71%.
Meanwhile, a report showed that German economic sentiment improved unexpectedly in April, rising for the fifth consecutive month.
A separate report showed that the rate of consumer price inflation in the single currency bloc was 2.7% in March, up from a preliminary estimate of 2.6% and unchanged from February.
Financial stocks remained broadly higher, led by Dutch lender ING Group, up 4.94%, and closely followed by France’s Societe Generale and BNP Paribas, with shares soaring 4.36% and 3.69%.
German lenders also extended earlier gains as shares in Deutsche Bank jumped 2.36% and Commerzbank added 2.97%.
Meanwhile, French food-products multinational Danone advanced 2.54% after reporting higher first-quarter sales, led by bottled water and baby food. Revenue rose to EUR5.12 billion from EUR4.76 billion euros a year earlier.
Sky Deutschland also contributed to gains, with shares soaring 10.59% after the Bild newspaper reported that the German soccer association will recommend the pay-television company retain the broadcast rights of the nation’s top soccer league through 2017.
In London, FTSE 100 jumped 0.78%, as U.K. lenders pushed higher and after official data showed that consumer price inflation rose to 3.5% in March, in line with expectations.
Shares in Barclays surged 3.79% and Lloyds Banking climbed 2.29%, while the Royal Bank of Scotland and HSBC Holdings added 1.94% and 1.14% respectively.
Mining stocks also turned broadly higher. Rio Tinto saw shares advance 0.33% and Bhp Biliton edged up 0.07%, while copper producers Xstrata and Kazakhmys added 1.16% and 1.54%.
Also in the energy sector, Afren climbed 5.54% as the company reported a “significant” oil discovery in the Kurdistan region of Iraq. The Simrit-2 exploration well encountered an estimated 409 meters of net oil pay.
On the downside, Burberry Group sank 4.92% as the U.K.’s largest luxury-goods maker reported fiscal fourth-quarter sales that trailed analysts’ estimates and said it remains vigilant as Europe’s economy slows.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.48%, S&P 500 futures signaled a 0.52% increase, while the Nasdaq 100 futures indicated a 0.43% gain.
Later in the day, the U.S. was to produce government data on building permits, housing starts and industrial production.
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