Investing.com - European stock markets extended gains on Thursday, as investor confidence strengthened ahead of comments by the Federal Reserve, amid growing hopes for signs of further stimulus measures.
During European afternoon trade, the EURO STOXX 50 climbed 0.97%, France’s CAC 40 rallied 1.04%, while Germany’s DAX 30 jumped 1.21%.
Investors were eyeing a Congressional testimony by Federal Chairman Ben Bernanke about the state of the U.S. economy, with hopes fresh stimulus measures will be announced after the central bank’s Vice-Chairman Janet Yellen laid out the case for more easing to bolster a fragile economy as financial turmoil mounts in the euro zone.
Stocks also found support after China’s central bank said it lowered its benchmark interest rate to 6.31%, its first rate cut since December 2008, in a bid to step up efforts to combat a deepening economic slowdown.
Earlier in the day, Spain’s Treasury successfully sold EUR2.07 billion of bonds, slightly more than the targeted amount, in an auction which met with solid investor demand, but saw borrowing costs rise.
The auction was viewed as a critical test of investor appetite for the country’s debt, coming just days after Spain warned that it was having difficulty accessing credit markets.
Spanish lenders remained sharply higher, as shares in BBVA and Banco Santander surged 3.02% and 2.91% respectively. They were closely followed by France’s BNP Paribas and Societe Generale, climbing 1.64% and 1.58%, while German lenders Deutsche Bank and Commerzbank rallied 1.16% and 2.58%.
Meanwhile, Telefonica, Spain’s biggest phone company, added 0.33% after announcing a joint venture with Vodafone to pool the basic infrastructure for their U.K. mobile-phone networks. The companies said the agreement will allow them to deliver nationwide 4G services faster than they would have done independently.
France-based Vivendi also gained 1.64% on reports Chairman Vincent Bollore wants to raise his stake in the French media company to between 4 and 5%. Bollore already has a 1.1% stake in Vivendi, according to data compiled by Bloomberg.
In London, FTSE 100 surged 1.48%, supported by strong gains in financial stocks, while the Bank of England left interest rates unchanged at 0.50% and maintained its quantitative easing program at GBP325 billion.
Shares in the Royal Bank of Scotland soared 3.91% and Lloyds Banking rallied 3.12%, while Barclays and HSBC Holdings advanced 2.74% and 1.27% respectively.
Elsewhere, mining giants and Rio Tinto and Bhp Billiton pushed sharply higher, jumping 3.60% and 2.69%, while copper producers Xstrata and Kazakhmys gained 2.53% and 2.87% respectively.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to rise of 0.57%, S&P 500 futures signaled a 0.80% increase, while the Nasdaq 100 futures indicated a 0.65% gain.
Later in the day, the U.S. was to release government data on initial unemployment claims, while Fed Chairman Ben Bernanke was to appear before the Joint Economic Committee, in Washington.
During European afternoon trade, the EURO STOXX 50 climbed 0.97%, France’s CAC 40 rallied 1.04%, while Germany’s DAX 30 jumped 1.21%.
Investors were eyeing a Congressional testimony by Federal Chairman Ben Bernanke about the state of the U.S. economy, with hopes fresh stimulus measures will be announced after the central bank’s Vice-Chairman Janet Yellen laid out the case for more easing to bolster a fragile economy as financial turmoil mounts in the euro zone.
Stocks also found support after China’s central bank said it lowered its benchmark interest rate to 6.31%, its first rate cut since December 2008, in a bid to step up efforts to combat a deepening economic slowdown.
Earlier in the day, Spain’s Treasury successfully sold EUR2.07 billion of bonds, slightly more than the targeted amount, in an auction which met with solid investor demand, but saw borrowing costs rise.
The auction was viewed as a critical test of investor appetite for the country’s debt, coming just days after Spain warned that it was having difficulty accessing credit markets.
Spanish lenders remained sharply higher, as shares in BBVA and Banco Santander surged 3.02% and 2.91% respectively. They were closely followed by France’s BNP Paribas and Societe Generale, climbing 1.64% and 1.58%, while German lenders Deutsche Bank and Commerzbank rallied 1.16% and 2.58%.
Meanwhile, Telefonica, Spain’s biggest phone company, added 0.33% after announcing a joint venture with Vodafone to pool the basic infrastructure for their U.K. mobile-phone networks. The companies said the agreement will allow them to deliver nationwide 4G services faster than they would have done independently.
France-based Vivendi also gained 1.64% on reports Chairman Vincent Bollore wants to raise his stake in the French media company to between 4 and 5%. Bollore already has a 1.1% stake in Vivendi, according to data compiled by Bloomberg.
In London, FTSE 100 surged 1.48%, supported by strong gains in financial stocks, while the Bank of England left interest rates unchanged at 0.50% and maintained its quantitative easing program at GBP325 billion.
Shares in the Royal Bank of Scotland soared 3.91% and Lloyds Banking rallied 3.12%, while Barclays and HSBC Holdings advanced 2.74% and 1.27% respectively.
Elsewhere, mining giants and Rio Tinto and Bhp Billiton pushed sharply higher, jumping 3.60% and 2.69%, while copper producers Xstrata and Kazakhmys gained 2.53% and 2.87% respectively.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to rise of 0.57%, S&P 500 futures signaled a 0.80% increase, while the Nasdaq 100 futures indicated a 0.65% gain.
Later in the day, the U.S. was to release government data on initial unemployment claims, while Fed Chairman Ben Bernanke was to appear before the Joint Economic Committee, in Washington.