Investing.com - European stocks opened higher on Friday, as Chinese markets stabilized after the country’s new stock market circuit breaker introduced only on Monday was suspended as the system failed to reduce market volatility.
During European morning trade, the EURO STOXX 50 advanced 0.48%, France’s CAC 40 gained 0.40%, while Germany’s DAX 30 climbed 0.59%.
European equities found support after the China Securities Regulatory Commission suspended the market-calming system and after the People's Bank of China set a higher yuan guidance rate for the first time in nine days.
Global equity markets had plunged after Wednesday’s largest daily drop in the yuan midpoint rate since last August and after trading on Chinese markets was suspended on Thursday after only one hour of trading.
Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) gained 0.63% and 0.92%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) rallied 0.96% and 1.67%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) advanced 0.76% and 1.75% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) climbed 0.46% and 0.45%.
Elsewhere, Renault SA (PA:RENA) shares were up 2.27% amid reports it and Nissan Motor Co., Ltd. (T:7201) plan to offer more than 10 models with autonomous drive in the next four years.
Also in the auto sector, Volkswagen (DE:VOWG_p) AG was up 3.83% after saying its chief executive officer will meet with the head of the U.S. Environmental Protection Agency next week to negotiate a vehicle recall to resolve the diesel crisis weighing on the automaker.
In London, FTSE 100 gained 0.65%, led by Tesco (L:TSCO), up 5.03% after the supermarket chain said it will introduce a delivery charge for "click and collect" orders under 30 pounds, in a move to ensure the service remains sustainable.
Financial stocks were also sharply higher, as the Royal Bank of Scotland (L:RBS) jumped 1.28% and Barclays (L:BARC) advanced 1.29%, while Lloyds Banking (L:LLOY) and HSBC Holdings (L:HSBA) rallied 1.37% and 1.39% respectively.
Mining stocks added to gains on the commodity-heavy index. Shares in Rio Tinto (L:RIO) climbed 2.47% and Bhp Billiton (L:BLT) advanced 2.52%, while rival company Glencore (L:GLEN) surged 3.04%.
Meanwhile, Royal Dutch Shell (L:RDSa) tumbled 1.37% despite reports the company’s £36 billion bid for BG Group (L:BG) is poised to win the support of most of the oil giant's shareholders. BG Group was up 3.18% following the news.
In the U.S., equity markets pointed to a sharply higher open. The Dow Jones Industrial Average futures pointed to a 1.20% jump, S&P 500 futures signaled a 1.20% gain, while the Nasdaq 100 futures indicated a 1.30% rally.