June's AI-picked stock updates now live. See what's new in Tech Titans, up 28.5% year to date.Unlock Stocks

European stocks higher on fiscal cliff hopes; DAX jumps 1.1%

Published 11/19/2012, 04:19 AM
NDX
-
UK100
-
FCHI
-
DJI
-
DE40
-
STOXX50
-
HSBA
-
BARC
-
BP
-
INGA
-
DBKGn
-
BHP
-
RIO
-
AAL
-
BHPB
-
FLG
-
HG
-
FTNMX551030
-
NWSA
-
Investing.com - European stocks rallied after the open Monday, rebounding from three-month lows hit in the previous session, as hopes for a resolution to the U.S. fiscal cliff boosted appetite for riskier assets.

Market players also kept an eye on developments regarding Greece’s fiscal woes as well as growing geopolitical tensions in the Middle East.

During European morning trade, the EURO STOXX 50 climbed 1%, France’s CAC 40 gained 1%, while Germany’s DAX 30 rose 1.1%.

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.

Greece also remained in focus. Concerns over the country’s debt woes persisted amid disagreements between the International Monetary Fund and Europe on how best to reduce the country’s debt to manageable levels.

A decision on disbursing the country’s next tranche of aid, worth EUR31.5 billion, was expected Tuesday.

Shares in the financial sector were broadly higher, with Germany’s Deutsche Bank up 2.7%, France’s Societe General gaining 2.6% and Italy’s Unicredit rising 2.3%.

Dutch financial service provider ING Group advanced 1.9% 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 0.8%, boosted by strong gains in financial sector stocks and raw material producers.

Shares in Barclays rallied 3.2%, while HSBC Holdings added 1.9%.

Meanwhile, oil giant British Petroleum jumped 2.4% 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 1.8% and 1.7% respectively, while copper maker Anglo American advanced 1.7%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a gain of 0.5% at the open, S&P 500 futures signaled a 0.6% increase, while the Nasdaq 100 futures indicated a 0.4% gain.

Later in the day, the U.S. was to release an industry report on existing home sales.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.