Investing.com - European markets opened mostly higher on Friday, as global optimism boosted risk sentiment, although progress on the Brexit front supported demand for the pound, limiting gains for UK equities.
The EURO STOXX 50 advanced 0.77%, France’s CAC 40 climbed 0.59%, while Germany’s DAX 30 was up 1.02% by 03:35 a.m. ET (07:35 GMT).
The U.S. Congress on Thursday passed legislation to temporarily fund the government through December 22, beofre a Friday midnight deadline and fuelling hopes the highly-anticipated U.S. tax reform will also be passed before the end of the year.
Financial stocks were sharply higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) surged 3.07% and 2.74%, while Germany's Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) rallied 2.35% and 2.59%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) jumped 1.64% and 1.68% respectively, while Spanish bank BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 1.41% and 2.21%.
Elsewhere, Volkswagen (DE:VOWG_p) shares were up 1.80% following news one of the carmaker's former executives was sentenced to seven years in jail and given a $400,000 fine after pleading guilty to helping the company cheat on diesel emissions tests.
Deutsche Lufthansa AG (DE:LHAG) added to gains, as shares rallied 1.22% despite the fact that Brussels’ antitrust watchdog is concerned that the airliner's acquisition of half the operations of insolvent company Air Berlin will lead to higher prices and less choice for consumers.
In London, FTSE 100 dipped 0.01%, after European Commission President Jean-Claude Juncker said on Friday that "sufficient progress" has been made in the first phase of Brexit talks and that discussions can now move to trade.
Unilever (LON:ULVR) was one of the worst performers on the index, with shares down 1.26%. The company announced on Thursday that it plans to appeal a €60 million fine imposed by Italy's competition watchdog over the alleged “abuse” of its position in the local ice cream market.
Meanwhile, UK lenders tracked their European counterparts higher. Shares in HSBC Holdings (LON:HSBA) rose 0.22% and the Royal Bank of Scotland (LON:RBS) jumped 1.49%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) surged 1.84% and 3.08% respectively.
Mining stocks were also on the upside on the commodity-index, as Anglo American (LON:AAL) rose 0.22% and Fresnillo (LON:FRES) climbed 0.70%, while rival company Glencore (LON:GLEN) advanced 0.90%.
The Berkeley Group Holdings plc (LON:BKGH) was one of the top performers with shares up 8.29% after the home builder reported a 35.8% increase in first-half earnings and a 13.7% revenue climb.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.08% gain, S&P 500 futures signaled a 0.13% rise, while the Nasdaq 100 futures indicated a 0.45% climb.