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European stocks open higher with eyes on U.K. vote, ECB; DAX up 0.32%

Published 06/08/2017, 03:36 AM
Updated 06/08/2017, 03:36 AM
© Reuters.  European stocks move higher ahead of major events

Investing.com - European stocks opened higher on Thursday, as investors eyed the results of the day’s U.K. general election, as well as the European Central Bank’s policy decision.

During European morning trade, the EURO STOXX 50 rose 0.23%, France’s CAC 40 added 0.12%, while Germany’s DAX 30 gained 0.32%.

Polls on the eve of the U.K. election indicated that Prime Minister Theresa May will win the vote and increase her parliamentary majority.

Meanwhile, expectations are growing that the ECB could strike a less dovish tone at its meeting later Thursday after recent economic reports indicated that the recovery in the euro area is deepening.

Reports on Wednesday said the ECB plans to cut inflation forecasts for the next three years.

Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) gained 0.69% and 0.52%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) added 0.12% and 0.43%.

Among peripheral lenders, Spanish banks Banco Santander (MC:SAN) climbed 0.52% and 0.61%. Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) underperformed however, with shares sliding 0.13% and 0.47% respectively.

Elsewhere, RWE AG (DE:RWEG) saw shares rally 1.27% after Germany's highest court rolled back a tax on nuclear energy on Wednesday, deeming the fees the government has collected from utility companies as unconstitutional and "void."

Allianz (DE:ALVG) added to gains, with shares up 0.87% following reports the company is thinking of taking Euler Hermes (PA:ELER) private, by buying the shares it doesn’t already own in the French trade-credit insurer.

Shares in Euler Hermes surged 3.69% in early Thursday trade.

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In London, FTSE 100 inched up 0.03% in cautious trade ahead of the U.K. vote.

Financial stocks were moxtly higher, as Barclays (LON:BARC) edged up 0.07% and HSBC Holdings (LON:HSBA) rose 0.28%, while Lloyds Banking (LON:LLOY) advanced 0.80%. The Royal Bank of Scotland (LON:RBS) underperformed, with shares down 0.17%.

Mining stocks were also on the upside on the commodity-heavy index. Shares in Glencore (LON:GLEN) climbed 0.55% and BHP Billiton (LON:BLT) gained 0.56%, while Rio Tinto (LON:RIO) advanced 0.74%.

Astrazeneca (LON:AZN) shares rose 0.74% after the pharmaceuticals giant struck a deal worth up to £234 million to sell the rights to its migraine drug Zomig to family-owned German company Grünenthal.

Meanwhile, Vodafone Group (LON:VOD) was one of the worst performers on the index, with shares diving 4.28% after Capital One National Association sold 662 shares in the company.

In the U.S., equity markets pointed to a noderately higher open. The Dow Jones Industrial Average futures pointed to a 0.13% increase, S&P 500 futures showed a 0.08% gain, while the Nasdaq 100 futures indicated a 0.11% rise.

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