Investing.com - European stocks opened sharply higher on Friday, helped by rising oil prices and the Bank of Japan’s unexpected decision to adopt negative interest rates for the first time ever.
During European morning trade, the EURO STOXX 50 rallied 1.42%, France’s CAC 40 climbed 1.35%, while Germany’s DAX 30 jumped 1.20%.
At the conclusion of its monetary policy meeting on Friday, the BOJ said it was adopting a negative interest rate of minus 0.1% and added that it will cut interest rates further into negative territory if necessary.
The central bank’s decision came as it struggles to reach its 2% inflation goal amid ongoing concerns over global economic growth and plummeting oil prices.
Meanwhile, oil prices continued to rise for a fourth consecutive session and were hovering around $33 a barrel on Friday morning.
Energy stocks were broadly higher, as French oil and gas major Total SA (PA:TOTF) surged 2.30% and Italy’s ENI (MI:ENI) rallied 1.29%, while Norwegian rival Statoil advanced 2.71%.
Financial stocks added to gains, with French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) jumping 1.30% and 1.45%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) climbed 0.79% and 0.74%.
Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) climbed 1.08% and 1.51% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) advanced 1.20% and 1.86%.
In earnings news, TeliaSonera AB (ST:TLSN) climbed 0.86% after the Swedish phone carrier reported forth-quarter earnings that exceeded ananlysts’ estimates and said consumer demand for high speed Internet access remained strong in its home market.
Elsewhere, Telefonica (MC:TEF) SA surged 2.60% after the Spanish phone company said it plans to offer employees early retirement in a plan that will cost €2.9 billion upfront but will save money over the longer term.
In London, commodity-heavy FTSE 100 jumped 1.05%, helped by gains in the energy and mining sectors.
Mining giants Bhp Billiton (L:BLT) and Rio Tinto (L:RIO) rallied 1.32% and 1.59% respectively, while Glencore (L:GLEN) advanced 2.60% and Anglo American (L:AAL) soared 4.06%.
Meanwhile, oil and gas giant BP (L:BP) saw shares climb 1.57% and rival company Royal Dutch Shell (L:RDSa) gained 1.10%.
In the financial sector, stocks were also broadly higher. The Royal Bank of Scotland (L:RBS) rose 0.40% and Lloyds Banking (L:LLOY) advanced 0.73%, while Barclays (L:BARC) and HSBC Holdings (L:HSBA) jumped 1.82% and 2.21% respectively.
On the downside, shares in International Consolidated Airlines Group SA (L:ICAG) tumbled 1.62% after British Airlines became one of the latest international carriers to offer rebookings or refunds for tickets to areas affected by the Zika virus.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.80% gain, S&P 500 futures a 0.84% climb, while the Nasdaq 100 futures indicated a 0.72% rise.