Investing.com - European stocks traded higher in morning trade on Thursday as the new British Prime Minister (PM) Theresa May took the U.K. helm preparing to deal with trade negotiations with the European Union after the Britons decided to leave the bloc and investors looked ahead to the Bank of England’s (BoE) policy decision.
During European morning trade, the Euro Stoxx 50 gained 1.09%, France’s CAC 40 traded up 1.06%, while Germany’s DAX 30 advanced 1.24%.
Meanwhile, oil prices regained ground in European trade on Thursday, after plunging more than 4% in the prior session after bearish U.S. inventory data heightened concerns about a global glut.
In European equities, energy stocks were higher, as French oil and gas major Total SA (PA:TOTF) gained 1.9%, Italy’s ENI (MI:ENI) SpA rose 1.6%, while Norwegian rival Statoil (OL:STL) ASA traded up 2.2%.
Financial stocks added to gains. French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rose 2.9% and 2.8%, respectively, while Germany’s Deutsche Bank (DE:DBKGn) jumped 3.5%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) gained 3.2% and 5.4% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) traded up 2.2% and 1.8%, respectively.
In London, the commodity-heavy FTSE 100 gained 0.8% as traders breathed a sigh of relief for the appointment of Theresa May as the new Prime Minister and waited for the BoE to announce its monetary policy decision. Markets are pricing in an 80% chance of a rate cut.
Miners were trading higher. Anglo American (LON:AAL) and BHP Billiton (LON:BLT) gained 3.3% and 1.3%, respectively, while Glencore (LON:GLEN) rose 1.3% and shares in Rio Tinto (LON:RIO) advanced 2.4%.
Financial stocks were broadly higher with HSBC Holdings (LON:HSBA) up 1.4% and the Royal Bank of Scotland (LON:RBS) advancing 0.7%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) rose 0.6% and 0.8% respectively.
In the U.S., equity markets also pointed to a higher open open. The Dow Jones Industrial Average futures pointed to a 0.6% gain, S&P 500 futures a 0.6% increase, while the Nasdaq 100 futures indicated a 0.6% advance.