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European stocks open sharply higher, financials lead; DAX up 1.11%

Published 11/14/2016, 03:38 AM
© Reuters.  Frankfurt Stock Exchange
UK100
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FCHI
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DE40
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STOXX50
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HSBA
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BARC
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LLOY
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NWG
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SIEGn
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DBKGn
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CBKG
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BNPP
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SOGN
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BBVA
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SAN
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RWEG
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RIO
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AAL
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RRS
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ISP
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CRDI
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ESM24
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1YMM24
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NQM24
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FRES
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GLEN
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MDCM
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Investing.com - European stocks opened sharply higher on Monday, boosted by gains in the financial sector, as markets continued to digest Donald Trump’s election last week and the implications of his presidence for the U.S. economy.

During European morning trade, the EURO STOXX 50 rallied 1.34%, France’s CAC 40 advanced 1.27%, while Germany’s DAX 30 jumped 1.11%.

Market sentiment was lifted by hopes that increased fiscal spending and tax cuts under a Trump administration will bolster economic growth and inflation.

Meanwhile, expectations for higher U.S. interest rates also remained intact amid optimism that a pick-up in growth will allow the Federal Reserve to tighten borrowing costs.

Financial stocks were sharply higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) jumped 1.61% and 1.95%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) advanced 0.77% and 3.61%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) rallied 1.52% and 2.88% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) gained 2.05% and 1.49% .

Elsewhere, Siemens AG (DE:SIEGn) shares climbed 1.17% after the German company agreed to buy U.S. firm Mentor Graphics for $4.5 billion.

RWE AG ST O.N. (DE:RWEG) added to gains, with shares up 1.28% after the German utility said it sees 2016 earnings at the upper end of its guidance range.

In London, commodity-heavy FTSE 100 rallied 1.15%, boosted by gains in the mining sector.

Shares in Rio Tinto (LON:RIO) jumped surged 3.03%, while rivals Anglo American (LON:AAL) and Glencore (LON:GLEN) soared 3.18% and 3.24% respectively.

However, Fresnillo (LON:FRES) and Randgold (LON:RRS) ressources underperformed, with shares plummeting 1.13% and 2.18% respectively, amid dropping gold prices.

Financial stocks were broadly higher, as Lloyds Banking (LON:LLOY) gained 0.69% and HSBC Holdings (LON:HSBA) advanced 1.60%, while the Royal Bank of Scotland (LON:RBS) rallied 2.31% and Barclays (LON:BARC) surged 3.12%.

Mediclinic International PLC (LON:MDCM) moved lower for a second consecutive session, with shares down 0.99% aftet the company reported a 26% decline in underlying half-year earnings per share on Friday.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.64% climb, S&P 500 futures showed a 0.53% gain, while the Nasdaq 100 futures indicated a 0.46% increase.

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