Investing.com - European stocks rose in cautious trade on Monday, but gains were limited by uncertainty over the long term effectiveness of freshly announced measures to deal with the euro zone’s debt crisis.
During European morning trade, the EURO STOXX 50 rose 0.26%, France’s CAC 40 advanced 0.35%, while Germany’s DAX 30 add 0.10%.
On Friday, European Union leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt and also agreed to set up a joint banking supervisory body for the euro area.
In addition to the direct recapitalization of Spain’s banks, euro zone bailout funds will be able to purchase government debt in order to keep down borrowing costs.
But market sentiment cooled on Monday, as details about how and when European leaders can put the newly agreed measures into practice still remained uncertain.
Investors were also eyeing the outcome of the European Central Bank’s policy meeting on Thursday, amid growing expectations for a rate cut to support the faltering economy.
Financial stocks led gains, as shares in French lenders BNP Paribas and Societe Generale surged 2.54% and 1.36%, while Germany’s Deutsche Bank rose 0.18%.
Peripheral lenders also added to gains, with shares in Italy’s Intesa Sanpaolo adding 0.18%, while Spanish lenders BBVA and Banco Santander climbed 0.37% and 0.56%.
On the downside, Linde plunged 3.83% after agreeing to acquire Lincare Holdings Inc. for about USD3.8 billion to add U.S. oxygen and respiratory therapy services delivered to the home.
In London, FTSE 100 rose 0.20%, boosted by strong gains in financial stocks.
Shares in Barclays rallied 2.08% and Lloyds Banking jumped 1.70%, while HSBC Holdings advanced 0.37%.
Earlier in the day, Barclays Chairman Marcus Agius resigned after the bank was fined a record GBP290 million for trying to rig interest rates, sparking a political outcry.
Meanwhile, the Royal Bank of Scotland saw shares tumble 1.72% amid reports it is next in line to face fines in the Libor manipulation scandal. The bank’s exposure was to be raised at this week’s meeting of the Treasury Select Committee.
Elsewhere, energy stocks were broadly higher, as shares in Essar Energy soared 3.65% and BP jumped 1.43%, while Anglo America added 0.12%.
Mining giants Rio Tinto and BHP Billiton climbed 0.47% and 0.39% respectively, while Xstrata saw shares drop 0.96% after reports said Glencore could be forced to pay almost GBP300m in break fees if it decides to walk away from its planned merger with the copper producer. Shares in Glencore were down 0.46%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.15% fall, S&P 500 futures signaled a 0.17% decline, while the Nasdaq 100 futures indicated a 0.15% loss.
Later in the day, the euro zone was to release official data on the unemployment rate. In the U.S., the Institute for Supply Management was to release a report on manufacturing activity.
During European morning trade, the EURO STOXX 50 rose 0.26%, France’s CAC 40 advanced 0.35%, while Germany’s DAX 30 add 0.10%.
On Friday, European Union leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt and also agreed to set up a joint banking supervisory body for the euro area.
In addition to the direct recapitalization of Spain’s banks, euro zone bailout funds will be able to purchase government debt in order to keep down borrowing costs.
But market sentiment cooled on Monday, as details about how and when European leaders can put the newly agreed measures into practice still remained uncertain.
Investors were also eyeing the outcome of the European Central Bank’s policy meeting on Thursday, amid growing expectations for a rate cut to support the faltering economy.
Financial stocks led gains, as shares in French lenders BNP Paribas and Societe Generale surged 2.54% and 1.36%, while Germany’s Deutsche Bank rose 0.18%.
Peripheral lenders also added to gains, with shares in Italy’s Intesa Sanpaolo adding 0.18%, while Spanish lenders BBVA and Banco Santander climbed 0.37% and 0.56%.
On the downside, Linde plunged 3.83% after agreeing to acquire Lincare Holdings Inc. for about USD3.8 billion to add U.S. oxygen and respiratory therapy services delivered to the home.
In London, FTSE 100 rose 0.20%, boosted by strong gains in financial stocks.
Shares in Barclays rallied 2.08% and Lloyds Banking jumped 1.70%, while HSBC Holdings advanced 0.37%.
Earlier in the day, Barclays Chairman Marcus Agius resigned after the bank was fined a record GBP290 million for trying to rig interest rates, sparking a political outcry.
Meanwhile, the Royal Bank of Scotland saw shares tumble 1.72% amid reports it is next in line to face fines in the Libor manipulation scandal. The bank’s exposure was to be raised at this week’s meeting of the Treasury Select Committee.
Elsewhere, energy stocks were broadly higher, as shares in Essar Energy soared 3.65% and BP jumped 1.43%, while Anglo America added 0.12%.
Mining giants Rio Tinto and BHP Billiton climbed 0.47% and 0.39% respectively, while Xstrata saw shares drop 0.96% after reports said Glencore could be forced to pay almost GBP300m in break fees if it decides to walk away from its planned merger with the copper producer. Shares in Glencore were down 0.46%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.15% fall, S&P 500 futures signaled a 0.17% decline, while the Nasdaq 100 futures indicated a 0.15% loss.
Later in the day, the euro zone was to release official data on the unemployment rate. In the U.S., the Institute for Supply Management was to release a report on manufacturing activity.