Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

European stocks open higher as sentiment improves; Dax up 0.08%

Published 08/24/2017, 03:38 AM
Updated 08/24/2017, 03:38 AM
© Reuters.  European stocks move higher ahead of Jackson Hole summit

Investing.com - European stocks opened higher on Thursday, as the previous session's upbeat euro zone data continued to support, while investors eyed the Jackson Hole summit due to begin later in the day.

During European morning trade, the EURO STOXX 50 edged 0.18% higher, France’s CAC 40 added 0.19%, while Germany’s DAX 30 eased up 0.08%.

Sentiment improved after data on Wednesday showed a strong performance from the euro zone manufacturing sector this month.

The data followed a speech by European Central Bank President Mario Draghi in which he defended unconventional monetary policy and said that central banks should continue preparing for new challenges.

Draghi is set to speak on Friday at the annual central banking conference in Jackson Hole. The ECB President is not widely expected to deliver any new policy message in his speech despite speculation over how soon the central bank plans to start scaling back its stimulus program.

Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) gained 0.44% and 0.30%, while Germany’s Commerzbank (DE:CBKG) rose 0.34%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) added 0.30% and 0.35% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 0.62% and 0.72%.

Elsewhere, Deutsche Lufthansa (DE:LHAG) climbed 0.62 % following reports the airliner submitted a letter of interest in Air Berlin's Niki unit and other parts of the insolvent carrier.

Air Berlin has been in talks with interested parties since last week when it filed for insolvency after major shareholder, Gulf carrier Etihad, said it would no longer provide funding.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

In London, FTSE 100 rose 0.25%, boosted by Provident Financial (LON:PFG), whose shares soared 6.73 % as the company is racing to fix its technical problems in time to stop staff leaving for rival firms, taking its most lucrative customers with them. Concerns emerged after JP Morgan wrote down its estimated value of Provident’s home credit business to nothing.

Provident Financial shares had plunged on Tuesday after the company issued a shock profit warning and longstanding chief executive, Peter Crook, resigned.

CRH (LON:CRH) added to gains, as shares rallied 3.64 % after building materials group announced the sale of its U.S. distribution business for $2.6 billion. It also announced the purchase of Fels, a lime and aggregates business in Germany for €600 million.

Meanwhile, Dixons Carphone (LON:DC) dove 30.94 % after the company said pre-tax profits this year would be £360 million to £440 million, down from £501 million last year.

In the financial sector, stocks were mixed. Shares in the Royal Bank of Scotland (LON:RBS) slipped 0.16 % and Lloyds Banking (LON:LLOY) lost 0.32 %, while HSBC Holdings (LON:HSBA) inched up 0.05 % and Barclays (LON:BARC) gained 0.36 %.

Mining stocks were also mixed on the commodity-heavy index, as Anglo American (LON:AAL) slumped 0.30 % and Fresnillo (LON:FRES) dropped 0.58 %, while BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) climbed 0.43 % and 0.53 % respectively.

In the U.S., equity markets pointed to a steady. The Dow Jones Industrial Average futures pointed to a 0.02% gain, S&P 500 futures signaled a 0.04% dip, while the Nasdaq 100 futures indicated a 0.02% uptick.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.