Investing.com - European stock markets remained sharply higher on Tuesday, led by strong gains in the financial sector as markets continued to focus on Italy's key budget vote.
During European morning trade, the EURO STOXX 50 climbed 2.53%, France’s CAC 40 advanced 2.24%, while Germany’s DAX 30 jumped 2.42%.
Italian Prime Minister Silvio Berlusconi’s government was to face a crunch vote, which would test the prime ministers majority in parliament and determine if he has enough support to stay in power and implement austerity measures.
On Monday, Berlusconi denied speculation that he was planning to resign after Italy’s borrowing costs surged to euro-era highs.
The financial sector extended gains as France's second largest bank Societe Generale saw shares surge 9.03% after scrapping its 2011 dividend to help bolster capital when reporting a steeper than forecast drop in quarterly profit, hit by charges including Greek debt write downs.
BNP Paribas jumped 3.76% after saying last week that it was writing off 60% of the value of all the Greek debt it holds. Both banks had announced in September steps leading to trim a combined EUR300 billion of assets by 2013.
Meanwhile, Germany's Deutsche Bank saw shares rise 1.95% after recording lower investment-banking revenue, and Italian lenders Intesa Sanpaolo and Unicredit soared 4.40% and 3.60% respectively, as the country's 10-year government bond yields hit 14-year highs.
In London, FTSE 100 advanced 1.59%, also boosted by a strong gains in financial stocks.
Lloyds Banking was among the U.K.'s top gainers with shares surging 7.44% and the Royal Bank of Scotland jumping 3.02%, while Barclays and HSBC Holdings climbed 2.29% and 2.08%.
Elsewhere, Vodafone saw shares advance 2.91% after edging its full-year outlook higher as growth in emerging markets and robust trading in northern Europe helped the world's largest mobile operator to post first-half results ahead of forecasts.
Marks & Spencer, Britain's biggest clothing retailer climbed 2.02% after reporting a fall in profit that was less bad than anticipated.
Meanwhile, energy stocks also extended earlier gains, as shares in mining giants Rio Tinto and Bhp Billiton jumped 2.36% and 2.14%, while British Petroleum saw shares jump 1.75%.
Copper producers Xstrata and Kazakhmys advanced 3.09% and 2.83% respectively.
Elsewhere, U.S. equity markets pointed to a slightly higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.71%, S&P 500 futures signaled a 0.65% increase, while the Nasdaq 100 futures indicated a 0.91% gain.
Also Tuesday, finance ministers from the European Union member states were to meet in Brussels to discuss the region’s ongoing financial crisis.
During European morning trade, the EURO STOXX 50 climbed 2.53%, France’s CAC 40 advanced 2.24%, while Germany’s DAX 30 jumped 2.42%.
Italian Prime Minister Silvio Berlusconi’s government was to face a crunch vote, which would test the prime ministers majority in parliament and determine if he has enough support to stay in power and implement austerity measures.
On Monday, Berlusconi denied speculation that he was planning to resign after Italy’s borrowing costs surged to euro-era highs.
The financial sector extended gains as France's second largest bank Societe Generale saw shares surge 9.03% after scrapping its 2011 dividend to help bolster capital when reporting a steeper than forecast drop in quarterly profit, hit by charges including Greek debt write downs.
BNP Paribas jumped 3.76% after saying last week that it was writing off 60% of the value of all the Greek debt it holds. Both banks had announced in September steps leading to trim a combined EUR300 billion of assets by 2013.
Meanwhile, Germany's Deutsche Bank saw shares rise 1.95% after recording lower investment-banking revenue, and Italian lenders Intesa Sanpaolo and Unicredit soared 4.40% and 3.60% respectively, as the country's 10-year government bond yields hit 14-year highs.
In London, FTSE 100 advanced 1.59%, also boosted by a strong gains in financial stocks.
Lloyds Banking was among the U.K.'s top gainers with shares surging 7.44% and the Royal Bank of Scotland jumping 3.02%, while Barclays and HSBC Holdings climbed 2.29% and 2.08%.
Elsewhere, Vodafone saw shares advance 2.91% after edging its full-year outlook higher as growth in emerging markets and robust trading in northern Europe helped the world's largest mobile operator to post first-half results ahead of forecasts.
Marks & Spencer, Britain's biggest clothing retailer climbed 2.02% after reporting a fall in profit that was less bad than anticipated.
Meanwhile, energy stocks also extended earlier gains, as shares in mining giants Rio Tinto and Bhp Billiton jumped 2.36% and 2.14%, while British Petroleum saw shares jump 1.75%.
Copper producers Xstrata and Kazakhmys advanced 3.09% and 2.83% respectively.
Elsewhere, U.S. equity markets pointed to a slightly higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.71%, S&P 500 futures signaled a 0.65% increase, while the Nasdaq 100 futures indicated a 0.91% gain.
Also Tuesday, finance ministers from the European Union member states were to meet in Brussels to discuss the region’s ongoing financial crisis.