Investing.com - European stock markets extended gains on Wednesday, led by mining companies and banks as investor confidence improved after Spanish bond yields slightly eased although debt concerns persisted.
During European afternoon trade, the EURO STOXX 50 jumped 1.42%, France’s CAC 40 climbed 1.41%, while Germany’s DAX 30 advanced 1.30%.
Sentiment was under pressure after the yield on Spain’s 10-year government bonds continued to tick higher, briefly rising to 6.01% earlier Wednesday, amid concerns that the effects of the European Central Bank’s liquidity operation is wearing off.
Spanish Prime Minister Mariano Rajoy was to make a speech on the country’s recent austerity budget later in the day, as investors remained fearful that deficit reduction targets will not be met and the country will need a bailout.
Meanwhile, Italy saw its one-year borrowing costs rise for the first time since November earlier, in a poorly received government bond auction.
Italian lenders Unicredit and Intesa Sanpaolo led financial stocks higher, with shares soaring 5.92% and 5.54% respectively, after HSBC upgraded its recommendation on European banks to "overweight" from "neutral".
France’s BNP Paribas and Societe Generale also climbed 4.02% and 2.42%, while German Deutsche Bank and Commerzbank jumped 3.55% and 5.16%.
Meanwhile, CGGVeritas SA, the world’s largest seismic surveyor of oil fields, surged 5.55% after saying it boosted vessel production in the first quarter.
The Swiss maker of flavors and fragrances Givaudan also added to gains, rising 2.95% after the company reported improved first-quarter sales as it continued to pass on the higher cost of raw materials including vanilla and citrus oils with increased pricing.
In London, FTSE 100 rose 0.60%, as U.K. lenders tracked their European counterparts sharply higher and after industry data showed that U.K. retail sales rose 1.3% in March.
Barclays was one of the session’s top gainers, surging 4.79%, closely followed by Lloyds Banking, up 3.66%, while the Royal Bank of Scotland and HSBC Holdings jumped 1.09% and 0.88% respectively.
Mining stocks also turned higher with shares in Rio Tinto soaring 2.50% and Bhp Billiton rising 1.72%, while copper producers Xstrata and Kazakhmys advanced 1.80% and 2.64%.
Shares in Man Group, the world’s biggest publicly traded hedge-fund manager, rose 0.70%, erasing earlier losses after it was put on review for possible downgrade by Moody’s Investors Service, which cited pressures on earnings and funds under management.
Elsewhere, Michael Page International remained lower, plunging 4.43% after the recruitment services company reported first-quarter profit of GBP136 million and said markets continue to be weak and visibility remains limited.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.66%, S&P 500 futures signaled a 0.78% increase, while the Nasdaq 100 futures indicated a 0.69% gain.
Later in the day, the U.S. is to release government data on import prices as well as crude oil stockpiles and the federal budget balance. The Federal Reserve is also to publish its Beige Book.
During European afternoon trade, the EURO STOXX 50 jumped 1.42%, France’s CAC 40 climbed 1.41%, while Germany’s DAX 30 advanced 1.30%.
Sentiment was under pressure after the yield on Spain’s 10-year government bonds continued to tick higher, briefly rising to 6.01% earlier Wednesday, amid concerns that the effects of the European Central Bank’s liquidity operation is wearing off.
Spanish Prime Minister Mariano Rajoy was to make a speech on the country’s recent austerity budget later in the day, as investors remained fearful that deficit reduction targets will not be met and the country will need a bailout.
Meanwhile, Italy saw its one-year borrowing costs rise for the first time since November earlier, in a poorly received government bond auction.
Italian lenders Unicredit and Intesa Sanpaolo led financial stocks higher, with shares soaring 5.92% and 5.54% respectively, after HSBC upgraded its recommendation on European banks to "overweight" from "neutral".
France’s BNP Paribas and Societe Generale also climbed 4.02% and 2.42%, while German Deutsche Bank and Commerzbank jumped 3.55% and 5.16%.
Meanwhile, CGGVeritas SA, the world’s largest seismic surveyor of oil fields, surged 5.55% after saying it boosted vessel production in the first quarter.
The Swiss maker of flavors and fragrances Givaudan also added to gains, rising 2.95% after the company reported improved first-quarter sales as it continued to pass on the higher cost of raw materials including vanilla and citrus oils with increased pricing.
In London, FTSE 100 rose 0.60%, as U.K. lenders tracked their European counterparts sharply higher and after industry data showed that U.K. retail sales rose 1.3% in March.
Barclays was one of the session’s top gainers, surging 4.79%, closely followed by Lloyds Banking, up 3.66%, while the Royal Bank of Scotland and HSBC Holdings jumped 1.09% and 0.88% respectively.
Mining stocks also turned higher with shares in Rio Tinto soaring 2.50% and Bhp Billiton rising 1.72%, while copper producers Xstrata and Kazakhmys advanced 1.80% and 2.64%.
Shares in Man Group, the world’s biggest publicly traded hedge-fund manager, rose 0.70%, erasing earlier losses after it was put on review for possible downgrade by Moody’s Investors Service, which cited pressures on earnings and funds under management.
Elsewhere, Michael Page International remained lower, plunging 4.43% after the recruitment services company reported first-quarter profit of GBP136 million and said markets continue to be weak and visibility remains limited.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.66%, S&P 500 futures signaled a 0.78% increase, while the Nasdaq 100 futures indicated a 0.69% gain.
Later in the day, the U.S. is to release government data on import prices as well as crude oil stockpiles and the federal budget balance. The Federal Reserve is also to publish its Beige Book.