Investing.com - European stocks were higher on Friday, after plunging on Thursday due to mounting concerns over Portugal's banking sector and after disappointing economic reports from the euro zone.
During European morning trade, the DJ Euro Stoxx 50 advanced 0.65%, France’s CAC 40 climbed 0.59%, while Germany’s DAX rose 0.32%.
European equities came under broad selling pressure on Thursday amid growing fears over financial troubles at the family-owned holding companies behind Espirito Santo Financial Group, Portugal's largest listed bank.
Markets were also jittery after data on Thursday showing that industrial output in France, Italy and Holland declined in May added to concerns over the outlook for the euro zone economy.
Financial stocks were broadly higher, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) surged 2% and 1.92%, while Germany's Deutsche Bank (XETRA:DBKGn) edged up 0.16%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) rallied 1.51% and 2.16% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) climbed 0.93% and 1.63%.
Trading in Portugal's Banco Espirito Santo was suspended on Thursday. The lender disclosed an exposure of €1.18 billion to companies of Grupo Espirito Santo after a group company missed some debt payments.
Elsewhere, Symrise (XETRA:SY1G) advanced 0.76% amid reports Japan’s Ajinomoto Co. (TOKYO:2802) is interested in buying the German chemical manufacturer.
In London, FTSE 100 rose 0.32%, as U.K. lenders tracked their European counterparts higher.
Shares in Barclays (LONDON:BARC) added 0.37% and Lloyds Banking (LONDON:LLOY) climbed 0.59%, while the Royal Bank of Scotland (LONDON:RBS) and HSBC Holdings (LONDON:HSBA) gained 0.70% and 0.95% respectively.
Imperial Tobacco Group (LONDON:IMT) added to gains, up 3.20%, after saying it is in talks with Reynolds American (NYSE:RAI) and Lorillard (NYSE:LO) to buy some assets and brands.
Meanwhile, mining stocks moved sharply lower, as Antofagasta (LONDON:ANTO) tumbled 1.52% and Rio Tinto (LONDON:RIO) lost 1.72%, while Fresnillo (LONDON:FRES) plummeted 2.01% and Randgold Resources (LONDON:RRS) led losses on the index with shares plunging 3.44%.
In the U.S., equity markets pointed to a higher open. The Dow 30 futures pointed to a 0.24% gain, S&P 500 futures signaled a 0.24% rise, while the Nasdaq 100 futures indicated a 0.31% increase.