Investing.com - European stock markets extended gains on Thursday, as sentiment found support amid hopes for a successful Greek debt swap deal later in the day and after positive industrial production data from Germany.
During European afternoon trade, the EURO STOXX 50 rallied 1.76%, France’s CAC 40 surged 2.02%, while Germany’s DAX 30 jumped 2.12%.
Prospects for a successful Greek deal rose after a group of major banks and funds said they would take part in the swap. As of late Wednesday, about 52% of the EUR206 billion bonds up for restructuring had been pledged.
A positive outcome should clear the way for a bailout package and help Greece avert a messy debt default.
Sentiment was also boosted by data showing that German industrial production rebounded in January after a steep drop the previous month, climbing 1.6%, surpassing expectations for a 1.1% increase.
Financial stocks extended earlier gains as French lenders Societe Generale and BNP Paribas soared 4.17% and 3.77%, while Germany’s Deutsche Bank and Commerzbank climbed 4.12% and 2.98%.
Auto makers were also sharply higher, led by Daimler whose shares surged 4.65%, while Volkswagen and BMW added 3.02% and 1.45%.
Bayerische Motoren Werke gained 1.44% after the world’s largest maker of luxury vehicles reported record profit in 2011 of EUR8.02 billion buoyed by demand for the X3 sport-utility vehicle.
Meanwhile, Gemalto rallied 4.84% as the inventor of the smart chip used in bank and phone cards forecast revenue and operating profit will increase this year.
In London, FTSE 100 climbed 1.32%, after the Bank of England left its benchmark interest rate and the size of its asset purchase program unchanged.
Mining giants Rio Tinto and Bhp Billiton led gains, with shares soaring 3.48% and 2.72% respectively, while copper producers Xstrata and Kazakhmys advanced 1.86% and 3.82%.
Meanwhile, U.K. lenders extended earlier gains. Shares in HSBC Holdings rose 1.87% and Lloyds Banking added 0.77%, while Barclays and the Royal Bank of Scotland gained 0.78% and 0.84%.
Elsewhere, insurance company Aviva rallied 2.73% after the company said its operating profit fell 2% to GBP2.5 billion.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.75%, S&P 500 futures signaled a 0.86% increase, while the Nasdaq 100 futures indicated a 0.75% gain.
Later in the day, the European Central Bank was to hold its policy setting meeting, which was to be followed by a closely watched press conference.
Meanwhile, the U.S. was to produce government data on initial jobless claims.
During European afternoon trade, the EURO STOXX 50 rallied 1.76%, France’s CAC 40 surged 2.02%, while Germany’s DAX 30 jumped 2.12%.
Prospects for a successful Greek deal rose after a group of major banks and funds said they would take part in the swap. As of late Wednesday, about 52% of the EUR206 billion bonds up for restructuring had been pledged.
A positive outcome should clear the way for a bailout package and help Greece avert a messy debt default.
Sentiment was also boosted by data showing that German industrial production rebounded in January after a steep drop the previous month, climbing 1.6%, surpassing expectations for a 1.1% increase.
Financial stocks extended earlier gains as French lenders Societe Generale and BNP Paribas soared 4.17% and 3.77%, while Germany’s Deutsche Bank and Commerzbank climbed 4.12% and 2.98%.
Auto makers were also sharply higher, led by Daimler whose shares surged 4.65%, while Volkswagen and BMW added 3.02% and 1.45%.
Bayerische Motoren Werke gained 1.44% after the world’s largest maker of luxury vehicles reported record profit in 2011 of EUR8.02 billion buoyed by demand for the X3 sport-utility vehicle.
Meanwhile, Gemalto rallied 4.84% as the inventor of the smart chip used in bank and phone cards forecast revenue and operating profit will increase this year.
In London, FTSE 100 climbed 1.32%, after the Bank of England left its benchmark interest rate and the size of its asset purchase program unchanged.
Mining giants Rio Tinto and Bhp Billiton led gains, with shares soaring 3.48% and 2.72% respectively, while copper producers Xstrata and Kazakhmys advanced 1.86% and 3.82%.
Meanwhile, U.K. lenders extended earlier gains. Shares in HSBC Holdings rose 1.87% and Lloyds Banking added 0.77%, while Barclays and the Royal Bank of Scotland gained 0.78% and 0.84%.
Elsewhere, insurance company Aviva rallied 2.73% after the company said its operating profit fell 2% to GBP2.5 billion.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.75%, S&P 500 futures signaled a 0.86% increase, while the Nasdaq 100 futures indicated a 0.75% gain.
Later in the day, the European Central Bank was to hold its policy setting meeting, which was to be followed by a closely watched press conference.
Meanwhile, the U.S. was to produce government data on initial jobless claims.