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European stocks higher, eyes on ECB meeting; Dax up 0.08%

Published 08/04/2014, 03:40 AM
Updated 08/04/2014, 03:40 AM
European stocks gain ground ahead of ECB policy statement

European stocks gain ground ahead of ECB policy statement

Investing.com - European stocks were higher on Monday, despite downbeat Spanish employment data, as investors eyed a policy meeting by the European Central Bank later in the week.

During European morning trade, the DJ Euro Stoxx 50 gained 0.46%, France’s CAC 40 advanced 0.46%, while Germany’s DAX edged up 0.08%.

Data late last week showed that the annual rate of inflation in the euro area slowed to 0.4% last month from 0.5% in June, adding to pressure on the ECB to implement measures to avert the risk of deflation in the region.

Earlier Monday, official data showed that the number of unemployed people in Spain dropped by 29,800 last month, compared to expectations for a decline of 116,300. In June, the number of unemployed people in Spain declined by 122,700.

Meanwhile, in the U.S., disappointing employment data on Friday eased speculation over the timing of a possible rate hike by the Federal Reserve.

Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) jumped 1.41% and 1.38%, while Germany's Commerzbank (XETRA:CBKG) gained 1.23%.

Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) rallied 1.77% and 1.83% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) advanced 0.90% and 0.95%.

In Portugal, the central bank announced that it took control of Banco Espirito Santo (LISBON:BES) in a €4.9 billion bailout.

Elsewhere, Daimler (XETRA:DAIGn) shares climbed 0.66% after the German automaker said it will cut spare-part prices for its Mercedes-Benz cars in China by an average 15% from next month amid a government investigation into whether carmakers manipulated prices.

In London, FTSE 100 rose 0.19%, as U.K. lenders tracked their European counterparts higher.

Shares in HSBC Holdings (LONDON:HSBA) edged up 0.19% and the Royal Bank of Scotland (LONDON:RBS) added 0.26%, while Barclays (LONDON:BARC) and Lloyds Banking (LONDON:LLOY) climbed 0.56% and 0.59% respectively.

In the mining sector, stocks were mixed as Glencore Xstrata (LONDON:GLEN) jumped 1.05% and Rio Tinto (LONDON:RIO) advanced 1.10%, while Polymetal (LONDON:POLYP) slipped 0.20% and Vedanta Resources (LONDON:VED) declined 0.74%.

Meanwhile, Barratt Developments (LONDON:BDEV) was the worst performer on the index, with shares plummeting 1.76%, after Deutsche Bank restated the stock's "buy" rating.

In the U.S., equity markets pointed to a higher open. The Dow 30 futures pointed to a 0.35% gain, S&P 500 futures signaled a 0.37% increase, while the Nasdaq 100 futures indicated a 0.28% rise.

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