Investing.com - European stocks opened sharply higher on Friday, supported by upbeat comments by European Central Bank President Mario Draghi and as investors eyed the release of U.S. jobs data later in the day.
During European morning trade, the EURO STOXX 50 rallied 1.19%, France’s CAC 40 advanced 1.32%, while Germany’s DAX 30 jumped 1.07%.
European equities strengthened after ECB President Mario Draghi said in a speech Thursday that growth in the euro zone is picking up thanks to the central bank’s accommodative monetary policy.
The ECB has been buying €60 billion of bonds each month under a program set to run until at least September 2016. However, Mr. Draghi has said the central bank would do more if inflation weakens further.
On Wednesday, data showed that the annual rate of inflation in the single currency bloc fell by 0.1% in September. It was the first time in six months that the region saw declining inflation.
Elsewhere, investors were awaiting Friday's U.S. nonfarm payrolls report for September, which could help to provide clarity on the likelihood of a near-term interest rate hike by the Federal Reserve.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) rallied 1.49% and 1.53%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) jumped 1.62% and 1.95%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) advanced 0.98% and 1.41% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) gained 0.36% and 0.53%.
Telecom Italia (MILAN:TLIT) SpA added to gains, with shares up 1.33% amid reports Vivendi (PARIS:VIV) SA increased its stake in the telecommunications provider to 19%. Vivendi gained 0.43% following the news.
Elsewhere, beleaguered carmaker Volkswagen (XETRA:VOWG) remained in the spotlight, as shares tumbled 1.84% after the company said on Thursday it would take longer than expected to investigate its rigging of vehicle emissions tests.
In London, FTSE 100 advanced 1.04%, as U.K. lenders tracked their European counterparts sharply higher.
Shares in HSBC Holdings (LONDON:HSBA) gained 0.93% and Barclays (LONDON:BARC) jumped 1.98%, while the Royal Bank of Scotland (LONDON:RBS) and Lloyds Banking (LONDON:LLOY) surged 2.38% and 2.67% respectively.
Meanwhile, mining stocks were mixed, as Fresnillo (LONDON:FRES) edged down 0.08% and Randgold Resources (LONDON:RRS) tumbled 0.99%, while Glencore (LONDON:GLEN) rose 0.20% and Rio Tinto (LONDON:RIO) gained 0.41%. Glencore
In the U.S., equity markets pointed to a sharply higher open. The Dow Jones Industrial Average futures pointed to a 0.99% jump, S&P 500 futures signaled a 1% rally, while the Nasdaq 100 futures indicated a 1.40% surge.