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European stocks rise as ECB speculation supports; Dax up 0.89%

Published 08/19/2014, 03:33 AM

Investing.com - European stocks were higher on Tuesday, as mounting speculation over additional easing measures by the European Central Bank continued to support European equities.

During European morning trade, the DJ Euro Stoxx 50 rose 0.37%, France’s CAC 40 gained 0.39%, while Germany’s DAX advanced 0.89%.

Last week, data showed that the euro zone economy stagnated in the second quarter, adding to fears that the recovery in the region is running out of steam.

The weak report added to pressure on the ECB to implement fresh measure to shore up growth after it cut rates to record lows in June.

Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) gained 0.41% and 0.55%, while Germany's Deutsche Bank (XETRA:DBKGn) advanced 0.40%.

Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) climbed 0.42% and 0.67% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) rose 0.19% and 0.51%.

Elsewhere, A.P. Moeller Maersk (OTC:AMKAF) surged 4.09% after the Danish company raised its full-year profit forecast.

Thyssenkrupp (XETRA:TKAG) added to gains, up 0.25%, amid reports the German conglomerate plans to dispose of some businesses.

In London, FTSE 100 gained 0.44%, supported by Imperial Tobacco (LONDON:IMT), up 1.82%, after the company reported a smaller than predicted drop in nine-month net revenue, thanks to an improving European market.

Mining stocks were also broadly higher, as Rio Tinto (LONDON:RIO) climbed 0.48% and Glencore Xstrata (LONDON:GLEN) advanced 0.60%, while Vedanta Resources (LONDON:VED) rallied 1.17%.

Bhp Billiton (LONDON:BLT) underperformed on the other hand, with shares plummeting 2.88%, after the mining giant said it plans a spinoff of a company which will include assets from aluminum smelters to South African energy, in a move to simplify its operations.

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In the financial sector, stocks were broadly on the upside. Shares in Lloyds Banking (LONDON:LLOY) climbed 0.58% and Barclays (LONDON:BARC) jumped 1.05%, while the Royal Bank of Scotland (LONDON:RBS) surged 1.48%. HSBC Holdings (LONDON:HSBA) held steady, dipping only 0.01%.

In the U.S., equity markets pointed to a higher open. The Dow 30 futures pointed to a 0.32% gain, S&P 500 futures signaled a 0.26% rise, while the Nasdaq 100 futures indicated a 0.27% increase.

Later in the day, the U.S. was to release reports on building permits, housing starts and consumer inflation.

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