Investing.com – European stock markets were sharply higher on Wednesday, with shares in the financial sector leading gains after Germany’s Federal Constitutional Court rejected lawsuits aimed at blocking the country's participation in euro zone bailouts.
During European morning trade, the EURO STOXX 50 jumped 2.85%, France’s CAC 40 surged 2.8%, while Germany’s DAX 30 rallied 3%.
Earlier in the day, Germany’s constitutional court upheld the country’s participation in the first Greek bailout, but added that the country’s budgetary parliament committee must provide approval before any future decisions on granting bailout aid.
Shares in the beaten-up financial sector performed strongly, recouping some of the previous day’s sharp losses.
Deutsche Bank shares jumped 3.5%, shares in Commerzbank rallied 4.75%, while French lenders BNP Paribas and Societe Generale saw shares climb 3.25% and 3.7% respectively.
Italian lenders were broadly higher, amid speculation the European Central Bank was purchasing Italian government debt. The country’s Senate was due to vote on austerity measures later in the day.
Unicredit shares surged 4.4%, while the country’s second largest lender Intesa Sanpaolo gained 3.3%.
Shares in Swiss luxury goods maker Richemont jumped 4.6% after reporting a 29% increase in first-half revenue, boosted by strong sales in Asia.
In London, the FTSE 100 rose 2.1% as shares in lenders regained ground, following the previous day’s rout. Lloyds Banking Group advanced 5.65%, Royal Bank of Scotland shares gained 4.35%, while Barclays rose 4.1%.
Raw material producers also contributed to gains, with shares in mining giants BHP Billiton and Rio Tinto climbing 1.4% and 2.6% respectively, while copper producer Xstrata saw shares jump 3.1%.
Elsewhere, the outlook for U.S. equity markets was upbeat, tracking global equities higher. The Dow Jones Industrial Average futures pointed to a gain of 0.85%, S&P 500 futures rose 1%, while the Nasdaq 100 futures indicated a 0.9% increase.
Later in the day, Federal Reserve Bank of Chicago President Charles Evans was to speak at a public engagement in London. The Fed was also to publish its beige book, which looks at regional economic conditions.
During European morning trade, the EURO STOXX 50 jumped 2.85%, France’s CAC 40 surged 2.8%, while Germany’s DAX 30 rallied 3%.
Earlier in the day, Germany’s constitutional court upheld the country’s participation in the first Greek bailout, but added that the country’s budgetary parliament committee must provide approval before any future decisions on granting bailout aid.
Shares in the beaten-up financial sector performed strongly, recouping some of the previous day’s sharp losses.
Deutsche Bank shares jumped 3.5%, shares in Commerzbank rallied 4.75%, while French lenders BNP Paribas and Societe Generale saw shares climb 3.25% and 3.7% respectively.
Italian lenders were broadly higher, amid speculation the European Central Bank was purchasing Italian government debt. The country’s Senate was due to vote on austerity measures later in the day.
Unicredit shares surged 4.4%, while the country’s second largest lender Intesa Sanpaolo gained 3.3%.
Shares in Swiss luxury goods maker Richemont jumped 4.6% after reporting a 29% increase in first-half revenue, boosted by strong sales in Asia.
In London, the FTSE 100 rose 2.1% as shares in lenders regained ground, following the previous day’s rout. Lloyds Banking Group advanced 5.65%, Royal Bank of Scotland shares gained 4.35%, while Barclays rose 4.1%.
Raw material producers also contributed to gains, with shares in mining giants BHP Billiton and Rio Tinto climbing 1.4% and 2.6% respectively, while copper producer Xstrata saw shares jump 3.1%.
Elsewhere, the outlook for U.S. equity markets was upbeat, tracking global equities higher. The Dow Jones Industrial Average futures pointed to a gain of 0.85%, S&P 500 futures rose 1%, while the Nasdaq 100 futures indicated a 0.9% increase.
Later in the day, Federal Reserve Bank of Chicago President Charles Evans was to speak at a public engagement in London. The Fed was also to publish its beige book, which looks at regional economic conditions.