Investing.com - European stocks extended earlier gains during European afternoon hours on Monday, as optimism U.S. lawmakers will reach a compromise to avert the looming fiscal crisis boosted appetite for riskier assets.
During European afternoon trade, the EURO STOXX 50 jumped 1.4%, France’s CAC 40 rose 1.55%, while Germany’s DAX 30 rallied 1.5%.
Investors continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Sentiment was bolstered after U.S. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal crisis were "constructive."
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the six weeks left before the January 1 deadline.
Meanwhile, traders looked ahead to a meeting of euro zone finance ministers on Tuesday to discuss unlocking Greece’s next tranche of financial aid.
Shares in the financial sector remained broadly higher, with Germany’s Deutsche Bank and Commerzbank up 3.1% and 4% respectively, while France’s Societe General and BNP Paribas gained 3.3% and 3% apiece.
Dutch financial service provider ING Group advanced 2.6% after the European Commission extended a deadline for the company to sell its insurance operations in the region.
Elsewhere, in London, the FTSE 100 rose 1.1%, boosted by strong gains in financial sector stocks and raw material producers.
Shares in Barclays surged 4.5% after Goldman Sachs upgraded the stock to “buy” from “neutral”.
Meanwhile, oil giant British Petroleum jumped 2.75% on news the company was planning to buy back USD5.9 billion of its shares after selling its stake in its Russian joint venture TNK-BP to Rosneft.
Mining giants BHP Billiton and Rio Tinto tacked on 2.3% and 2.1% respectively, while copper maker Anglo American advanced 2.15%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a gain of 0.6% at the open, S&P 500 futures signaled a 0.75% increase, while the Nasdaq 100 futures indicated a 0.65% gain.
Later in the day, the U.S. was to release an industry report on existing home sales.
During European afternoon trade, the EURO STOXX 50 jumped 1.4%, France’s CAC 40 rose 1.55%, while Germany’s DAX 30 rallied 1.5%.
Investors continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Sentiment was bolstered after U.S. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal crisis were "constructive."
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the six weeks left before the January 1 deadline.
Meanwhile, traders looked ahead to a meeting of euro zone finance ministers on Tuesday to discuss unlocking Greece’s next tranche of financial aid.
Shares in the financial sector remained broadly higher, with Germany’s Deutsche Bank and Commerzbank up 3.1% and 4% respectively, while France’s Societe General and BNP Paribas gained 3.3% and 3% apiece.
Dutch financial service provider ING Group advanced 2.6% after the European Commission extended a deadline for the company to sell its insurance operations in the region.
Elsewhere, in London, the FTSE 100 rose 1.1%, boosted by strong gains in financial sector stocks and raw material producers.
Shares in Barclays surged 4.5% after Goldman Sachs upgraded the stock to “buy” from “neutral”.
Meanwhile, oil giant British Petroleum jumped 2.75% on news the company was planning to buy back USD5.9 billion of its shares after selling its stake in its Russian joint venture TNK-BP to Rosneft.
Mining giants BHP Billiton and Rio Tinto tacked on 2.3% and 2.1% respectively, while copper maker Anglo American advanced 2.15%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a gain of 0.6% at the open, S&P 500 futures signaled a 0.75% increase, while the Nasdaq 100 futures indicated a 0.65% gain.
Later in the day, the U.S. was to release an industry report on existing home sales.