European stocks rally on BoJ surprise announcement; Dax jumps 1.50%

European stocks open sharply higher as BoJ move boosts equities

Investing.com - European stocks opened sharply higher on Friday, as a surprise annoucement of additional easing by the Bank of Japan boosted global equity markets.

During European morning trade, the DJ Euro Stoxx 50 surged 1.72%, France’s CAC 40 rallied 1.62%, while Germany’s DAX jumped 1.50%.

In an unexpected move, the BOJ said it would raise its monetary base target to an annual increase of ¥80 trillion from ¥60-70 trillion yen in order to increase the chances of approaching its inflation goal.

The news came after the Federal Reserve announced on Wednesday that it was ending its monthly bond-buying program due to improvements taking place in the labor market.

Earlier Friday, official data showed that German retail sales dropped 3.2% last month, compared to expectations for a 1.0% fall. August's figure was revised to a 1.5% increase from a previously estimated 2.5% rise.

A separate report showed that French consumer spending slipped 0.8% in September, confounding expectations for a 0.3% fall. August's figure was revised to a 0.9% gain from a previously estimated 0.7% rise.

Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) advanced 2.18% and 0.66%, while Germany's Deutsche Bank (XETRA:DBKGn) rose 0.28%.

BNP Paribas earlier reported an 11% increase in third-quarter profit, beating analysts' estimates.

Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) climbed 0.44% and 1.22% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) jumped 1.01% and 1.19%.

On the downside, Eutelsat Communications (PARIS:ETL) declined 0.63% after the French operator of communication satellites said third-quarter sales rose more than expected.

In London, FTSE 100 advanced 0.96%, led by International Airlines Group (LONDON:ICAG), whose shares rallied 2.91% after the travel company reported a surge in nine-month profit to €694 million from €77 million last year.

Financial stocks were also on the upside, as Barclays (LONDON:BARC) gained 0.72% and Lloyds Banking (LONDON:LLOY) climbed 1.01%, while HSBC Holdings (LONDON:HSBA) and the Royal Bank of Scotland (LONDON:RBS) jumped 1.22% and 1.55% respectively.

Meanwhile, mining stocks were mixed. Shares in Bhp Billiton (LONDON:BLT) and Rio Tinto (LONDON:RIO) advanced 0.99% and 1.34%, while rivals Fresnillo (LONDON:FRES) and Randgold Resources (LONDON:RRS) tumbled 1.40% and 1.91%.

In the U.S., equity markets pointed to a sharply higher open. The Dow 30 futures pointed to a 0.98% increase, S&P 500 signaled an 0.96% gain, while the NASDAQ 100 futures indicated a 1.30% jump.

Later in the day, the euro zone was to produce closely watched preliminary data on consumer inflation, as well as a report on the unemployment rate.

The U.S. was to release data on personal income and expenditure as well as revised data on consumer sentiment and a report on business activity in the Chicago region.