Investing.com - European stocks opened higher on Friday, as the Bank of England’s latest policy decision continued to support and as markets turned their attention to an upcoming report on U.S. employment due later in the day.
During European morning trade, the EURO STOXX 50 gained 0.76%, France’s CAC 40 advanced 0.83%, while Germany’s DAX 30 rose 0.34%.
European equities were boosted after the Bank of England cut interest rates to a record-low 0.25% on Thursday in a bid to buffer the economy from a downturn following the Brexit vote.
The central bank also boosted its quantitative easing program by £60 billion and slashed its growth forecast for next year. It now expects growth of just 0.8% in 2017, down from 2.3% in its May forecasts.
Almost all economists had expected the BoE to cut rates and many also expected it to resume its multi-billion-pound program of government bond purchases.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rallied 1.22% and 1.50%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) gained 0.30% and 0.23%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) jumped 1.09% and 2.82% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 1.01% and 1.06%.
LafargeHolcim Ltd (SIX:LHN) added to gains, with shares soaring 5.03% after the Swiss building materials giant said core operating profit exceeded analysts’ estimates and confirmed its outlook for 2016.
On the downside, Allianz (DE:ALVG) plummeted 3.27% after the insurance company reported a 46% drop in year-on-year net income.
In London, commodity-heavy FTSE 100 climbed 0.63%, boosted by sharp gains in the mining sector.
Shares in Antofagasta (LON:ANTO) jumped 1.40% and BHP Billiton (LON:BLT) rallied 1.89%, while Rio Tinto (LON:RIO) and Anglo American (LON:AAL) surged 2.33% and 2.45% respectively.
Hikma Pharmaceuticals PLC (LON:HIK) was also one of the top performers on the index, with shares up 2.97%, after saying that revenue from the generic products division in the first half of the year was lower than previously expected due to slower approvals for certain new products.
Meanwhile, financial stocks were mixed as Barclays (LON:BARC) climbed 0.57% and HSBC Holdings (LON:HSBA) rallied 1.42%, while Lloyds Banking (LON:LLOY) slid 0.40% and the Royal Bank of Scotland (LON:RBS) dove 4.01%.
RBS earlier posted a £2.045 billion net loss for the first six months of 2016.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.27% rise, S&P 500 futures a 0.24% gain, while the Nasdaq 100 futures indicated a 0.31% increase.