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European stocks push higher on ECB comments, Gfk; Dax up 1.53%

Published 06/26/2013, 07:23 AM
Updated 06/26/2013, 07:24 AM
Investing.com - European stocks pushed higher on Wednesday, after comments by European Central Bank President Mario Draghi and the release of positive German consumer climate data, although expectations for the Federal Reserve to soon taper its stimulus program persisted.

During European afternoon trade, the EURO STOXX 50 surged 2.17%, France’s CAC 40 advanced 1.90%, while Germany’s DAX 30 rallied 1.53%.

ECB President Draghi said the overall economic outlook for the euro zone still warrants accommodative monetary policy and added that an exit from accommodative policy remains distant.

Earlier Wednesday, the Gfk German consumer climate index rose to 6.8 this month, from a reading of 6.5 the previous month, beating expectations for the index to remain unchanged.

Separately, fears over a credit squeeze in China eased after the country’s central bank indicated Tuesday that it was acting to support financial institutions with liquidity.

Financial stocks remained broadly higher, as French lenders BNP Paribas and Societe Generale surged 2.86% and 3.37%, while Germany's Deutsche Bank jumped 2.32%.

Peripheral lenders added to gains, wiith Spanish banks Banco Santander and BBVA rallying 3.70% and 3.46% respectively, while Italy's Unicredit and Intesa Sanpaolo advanced 1.90% and 2.77%.

Elsewhere, Colruyt soared 8.28% after Belgium’s biggest discount food retailer said full-year earnings amounted to EUR699.8 million, beating the average EUR684 million estimate.

In London, FTSE 100 jumped 0.97%, even as the Bank of England warned banks, insurers and borrowers of the dangers of sharp rises in interest rates and said the financial crisis in the euro zone still posed a threat to the U.K. economy.

U.K. lenders tracked their European counterparts sharply higher, as Shares in the Royal Bank of Scotland climbed 0.57% and HSBC Holdings rallied 1.54%, while Lloyds Banking and Barclays surged 1.73% and 1.83%

Meanwhile mining stocks remained on the downside. BHP Billiton and Rio Tinto declined 0.16% and 0.54% respectively, while Anglo American and Eurasian Natural Resources plummeted 2.23% and 3.64%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.38% rise, S&P 500 futures signaled a 0.47% increase, while the Nasdaq 100 futures indicated a 0.61% gain.

Later in the day, the U.S. was to release revised data on first quarter economic growth.


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