Investing.com - European stocks opened sharply higher on Monday, as Friday's weak U.S. employment data dampened expectations for a rate hike this year by the Federal Reserve.
During European morning trade, the EURO STOXX 50 rallied 1.76%, France’s CAC 40 surged 1.95%, while Germany’s DAX 30 jumped 1.35%.
The Labor Department reported on Friday that the U.S. economy added just 142,000 jobs last month, well below expectations of the 203,000 expected by economists.
Average hourly earnings were flat month-on-month and the labor force participation rate fell to just 62.4%, down from 62.6% in August. The unemployment rate was unchanged at 5.1%, in line with forecasts.
The report underlined fears that a slowdown in global economic growth has spread to the U.S. economy and prompted investors to push back expectations on the timing of an initial rate hike by the Fed to early 2016.
European equities also strengthened as data last week showing that the euro area fell back into negative inflation in September added to speculation that the European Central Bank will step up its quantitative easing program.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) rallied 1.85% and 1.68%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) advanced 0.97% and 1.86%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) jumped 1.33% and 1.21% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) climbed 0.73% and 1.93%.
Elsewhere, Swiss luxury group Compagnie Financiere Richemont SA (SIX:CFR) surged 3.82% after saying the merger of its subsidiary, Net-A-Porter, with Yoox (MILAN:YOOXm) has been completed and will generate a one-off accounting gain of between €610 million and €670 million.
In London, commodity-heavy FTSE 100 rallied 1.43%, boosted by sharp gains in the mining sector.
Shares in Bhp Billiton (LONDON:BLT) gained 2.88% and Antofagasta (LONDON:ANTO) advanced 2.94%, while Anglo American (LONDON:AAL) surged 4.01% and Glencore (LONDON:GLEN) soared 9.37%.
Glencore was boosted by reports it is in talks with a few parties including the Saudi Arabian sovereign wealth fund to sell a stake in its agricultural business with the aim of cutting its debt load.
Financial stocks were also broadly higher, as HSBC Holdings (LONDON:HSBA) climbed 0.98% and the Royal Bank of Scotland (LONDON:RBS) jumped 1.22%, while Lloyds Banking (LONDON:LLOY) and Barclays (LONDON:BARC) rallied 1.45% and 1.59% respectively.
The U.K. government announced on Monday that it plans to sell at least £2 billion worth of Lloyds Banking shares to retail investors in spring 2016 with the intention of fully exiting its shareholding in the lender.
In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.08% downtick, S&P 500 futures signaled a 0.12% loss, while the Nasdaq 100 futures indicated a 0.01% dip.