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European stocks rise after Fed, U.K. GDP data ahead; Dax up 0.16%

Published 01/28/2016, 03:26 AM
Updated 01/28/2016, 03:26 AM
© Reuters.  European stocks gain ground after Fed statement, oil prices also support

Investing.com - European stocks opened higher on Thursday, after the Federal Reserve left markets with little information on future rate hikes and as investors eyed the release of U.K. fourth-quarter growth data due later in the trading session.

During European morning trade, the EURO STOXX 50 gained 0.48%, France’s CAC 40 rose 0.36%, while Germany’s DAX 30 added 0.16%.

As expected, the Fed kept interest rates unchanged at the conclusion of its policy meeting on Wednesday and said the U.S. economy was still on track for moderate growth.

Markets were jittery however, as the U.S. central bank gave no indications on the pace of future interest rate increases.

Investors also continued to focus on the oil market, as prices remained around the $32 a barrel mark following news of a decline in U.S. production.

Financial stocks were mixed, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) edged up 0.11% and 0.21%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) dropped 0.52% and 1.08%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) gained 0.72% and 1.06% respectively, while Spanish bank Banco Santander (MC:SAN) tumbled 1.46%

Elsewhere, Roche GS (VX:ROG) lost 1.56% after the drugmaker reported full-year earnings and a dividend slightly below analysts’ predictions.

Hennes & Mauritz AB, H & M ser. B (ST:HMb) added to losses, with shares down 3.04% after the Swedish clothing retailer said profit dropped by 11% in the three months to the end of November. The company also said it plans to open 425 new stores this fiscal year.

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In London, commodity-heavy FTSE 100 added 0.18%, helped by gains in the energy and mining sectors.

Mining giants Rio Tinto (L:RIO) and Randgold Resources (L:RRS) advanced 0.55% and 1.04% respectively, while Anglo American (L:AAL) jumped 1.66% and Glencore (L:GLEN) surged 3.01%.

Meanwhile, oil and gas major BP (L:BP) saw shares rally 1.54% and rival company Royal Dutch Shell (L:RDSa) climbed 2.43%.

In the financial sector, stocks were also broadly higher. The Royal Bank of Scotland (L:RBS) gained 0.54% and Barclays (L:BARC) advanced 0.88%, while Lloyds Banking (L:LLOY) and HSBC Holdings (L:HSBA) jumped 0.94% and 1.20% respectively.

In earnings news, Diageo (L:DGE) said organic net sales in the six months ending December 31 increased by 1.8%, but shares were still down 0.46%.

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 1% jump, while the Nasdaq 100 futures indicated a 1.44% rally.

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