Investing.com - European stocks opened higher on Friday, as market sentiment remained supported despite fresh diplomatic turmoil between the U.S. and Russia and as investors continued to monitor post-Harvey developments in Texas.
During European morning trade, the EURO STOXX 50 gained 0.47%, France’s CAC 40 avdnaced 0.71%, while Germany’s DAX 30 rose 0.29% by 03:50 a.m. ET (07:50 GMT).
Fresh tensions emerged after the U.S. has told Russia to close its consulate in San Francisco and buildings in Washington and New York that house trade missions in retaliation for Moscow cutting the U.S. diplomatic presence in Russia.
Meanwhile, investors continued to follow developments in the U.S. oil market as the Gulf Coast struggles to get gasoline flowing as refineries remain shut.
Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) rose 0.31% and 0.67%, while Germany’s Commerzbank (DE:CBKG) added 0.24%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) gained 0.49% and 2.95% and 0.36% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) advanced 0.35% and 0.70%.
Elsewhere, Vivendi (PA:VIV) saw shares soar 6.04% after the French media group reported a 5% increase in first-half revenues, thanks to Universal Music Group. But the company also reported a decline in profits.
Volvo, AB ser. B (ST:VOLVb) added to gains, with shares up 5.90% after the Swedish automaker set new financial targets and said it aimed for an operating margin above 10% over a business cycle.
In London, commodity-heavy FTSE 100 rose 0.20%, supported by gains in the mining sector and as investors eyed the release of UK manufacturing activity data due later in the trading session.
Shares in Rio Tinto (LON:RIO) climbed 0.43% and BHP Billiton (LON:BLT) advanced 0.53%, while Antofagasta (LON:ANTO) jumped 0.97% and Glencore (LON:GLEN) rallied 1.20%.
Meanwhile, financial stocks mixed. HSBC Holdings (LON:HSBA) and Barclays (LON:BARC) both inched up 0.03%, while Lloyds Banking (LON:LLOY) rose 0.22% and the Royal Bank of Scotland (LON:RBS) slipped 0.20%.
ITV (LON:ITV) was one of the top performers on the index, with shares up 1.11% after analysts at UBS revised their rating on the stock to "neutral" from "sell".
In other news, Michel Barnier, the European Union’s chief Brexit negotiator, said on Thursday that no “decisive progress” had been achieved after the third round of Brexit talks in Brussels.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.20% increase, S&P 500 futures signaled a 0.12% rise, while the Nasdaq 100 futures indicated a 0.11% gain.