Investing.com - European stocks rallied on Thursday, after the release of better-than-expected German data and as the minutes of the Federal Reserve's latest meeting indicated that policymakers remain divided on when to start scaling back the bank's stimulus program.
During European morning trade, the EURO STOXX 50 rallied 1.10%, France’s CAC 40 gained 0.96%, while Germany’s DAX 30 jumped 1.04%.
Markit research group said Germany's manufacturing purchasing managers' index rose to a two-year high of 52.0 in August, from a reading of 50.7 the previous month. Analysts had expected the index to rise to 51.2 this month.
Germany's service sector PMI rose to a six-month high of 52.4 this month, from a reading of 51.3 in July, beating expectations for a rise to 51.8.
In the U.S., the minutes of the Fed's July meeting showed that officials were "broadly comfortable" with plans to scale back the bank’s USD85 billion-a-month stimulus program.
However, policymakers remain divided over the timing of possible tapering, with almost all committee members agreeing that a change in the purchase program was not yet appropriate.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale advanced 1.02% and 0.52%, while Germany's Deutsche Bank rallied 1.29%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA gained 1.38% and 1.64% respectively, while Italy's Unicredit and Intesa Sanpaolo surged 1.54% and 1.72%.
Elsewhere, Royal Ahold soared 4.58% after the Dutch owner of the Stop & Shop supermarket chain reported second-quarter underlying operating income that exceeded analysts' estimates.
In London, FTSE 100 climbed 0.73%, supported by sharp gains in financial stocks.
Shares in Barclays advanced 0.77% and HSBC Holdings jumped 1.09%, while the Royal Bank of Scotland and Lloyds Banking rallied 1.50% and 1.89%.
Mining stocks were also on the upside, with Rio Tinto and BHP Billiton gaining 0.91% and 1.09% respectively, while Antofagasta jumped 1.96% and Glencore Xstrata surged 2.12%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.30% rise, S&P 500 futures signaled a 0.41% gain, while the Nasdaq 100 futures indicated a 0.56% increase.
Also Thursday, data showed that the preliminary reading of China’s HSBC manufacturing PMI rose to a four-month high of 50.1 in August, up from 47.7 in June. Economists had forecast a reading of 48.3.
The euro zone was to release data on manufacturing and service sector data later in the session, while the U.S. was to publish a report on initial jobless claims.
During European morning trade, the EURO STOXX 50 rallied 1.10%, France’s CAC 40 gained 0.96%, while Germany’s DAX 30 jumped 1.04%.
Markit research group said Germany's manufacturing purchasing managers' index rose to a two-year high of 52.0 in August, from a reading of 50.7 the previous month. Analysts had expected the index to rise to 51.2 this month.
Germany's service sector PMI rose to a six-month high of 52.4 this month, from a reading of 51.3 in July, beating expectations for a rise to 51.8.
In the U.S., the minutes of the Fed's July meeting showed that officials were "broadly comfortable" with plans to scale back the bank’s USD85 billion-a-month stimulus program.
However, policymakers remain divided over the timing of possible tapering, with almost all committee members agreeing that a change in the purchase program was not yet appropriate.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale advanced 1.02% and 0.52%, while Germany's Deutsche Bank rallied 1.29%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA gained 1.38% and 1.64% respectively, while Italy's Unicredit and Intesa Sanpaolo surged 1.54% and 1.72%.
Elsewhere, Royal Ahold soared 4.58% after the Dutch owner of the Stop & Shop supermarket chain reported second-quarter underlying operating income that exceeded analysts' estimates.
In London, FTSE 100 climbed 0.73%, supported by sharp gains in financial stocks.
Shares in Barclays advanced 0.77% and HSBC Holdings jumped 1.09%, while the Royal Bank of Scotland and Lloyds Banking rallied 1.50% and 1.89%.
Mining stocks were also on the upside, with Rio Tinto and BHP Billiton gaining 0.91% and 1.09% respectively, while Antofagasta jumped 1.96% and Glencore Xstrata surged 2.12%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.30% rise, S&P 500 futures signaled a 0.41% gain, while the Nasdaq 100 futures indicated a 0.56% increase.
Also Thursday, data showed that the preliminary reading of China’s HSBC manufacturing PMI rose to a four-month high of 50.1 in August, up from 47.7 in June. Economists had forecast a reading of 48.3.
The euro zone was to release data on manufacturing and service sector data later in the session, while the U.S. was to publish a report on initial jobless claims.