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European stocks open higher on Deutsche Bank relief

Published 10/03/2016, 03:33 AM
© Reuters.  European stocks gain ground as market sentiment improves

Investing.com - European stocks opened higher on Monday, as easing concerns over Deutsche Bank’s health continued to support market sentiment, although investors remained cautious ahead of a report on U.K. manufacturing activity data due later in the day.

During European morning trade, the EURO STOXX 50 gained 0.44%, France’s CAC 40 added 0.15%, while Germany's stock market remained closed for the Unification Day holiday.

European equities regained ground following reports late last week that Deutsche Bank (DE:DBKGn) is nearing a deal to settle a mortgage-securities investigation by paying a $5.4 billion fine, well below the Justice Department’s original proposal of $14 billion.

German newspaper Frankfurter Allgemeine Zeitung reported over the weekend that Deutsche Bank’s CEO John Cryan would be in Washington this week and that other senior executives will join him to negotiate a settlement with U.S. authorities.

Financial stocks were mostly lower execpt in Germany, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) slid 0.60% and 0.47%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) tumbled 1.02% and 1.74% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) dropped 0.85% and 0.71%.

In London, commodity-heavy FTSE 100 climbed 0.50%, helped by gains in the energy and mining sectors.

Shares in oil and gas major BP (LON:BP) advanced 0.58%, while rival Royal Dutch Shell (LON:RDSa) rallied 2.03%, still supported by last week’s oil freeze deal.

Mining giants Rio Tinto (LON:RIO) and Glencore (LON:GLEN) rose 0.35% and 0.39% respectively, while Anglo American (LON:AAL) climbed 0.63% and BHP Billiton (LON:BLT) gained 0.73%.

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Meanwhile, financial stocks were mostly lower as Barclays (LON:BARC) slid 0.57% and Lloyds Banking (LON:LLOY) dropped 0.77%, while the Royal Bank of Scotland (LON:RBS) lost 1.01%. HSBC Holdings (LON:HSBA) outperformed, with shares advancing 0.48%.

Centrica (LON:CNA) added to losses, with shares down 0.74% after the utility company announced plans to cut 560 jobs at British Gas and to shut down a major green energy business as part of a £3 million-a-year “efficiency program”.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.01% gain, S&P 500 futures showed a 0.02% dip, while the Nasdaq 100 futures indicated a 0.01% downtick.

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