Investing.com - European stock markets held on to sharp gains on Wednesday, despite disappointing U.S. employment data, as market sentiment remained firm amid hopes for an imminent debt restructuring agreement for Greece.
During European afternoon trade, the EURO STOXX 50 jumped 1.7%, France’s CAC 40 rallied 1.5%, while Germany’s DAX 30 soared 2.1%.
European equities remained higher after U.S. payroll processing firm ADP said that U.S. non-farm private employment rose by 170,000 in January, falling short of expectations for a gain of 190,000.
Market sentiment was boosted earlier by better-than-expected German PMI data and fresh hopes that talks with Greece’s creditors are close to being concluded.
Shares in the financial sector extended gains. French banks Societe Generale and BNP Paribas, which both have high exposure to Greek sovereign debt soared 5.45% and 3.35% respectively, while German lenders Deutsche Bank and Commerzbank jumped 3% and 3.1%.
Peripheral lenders were also higher, with Italy’s Intesa Sanpaolo and Unicredit surging 4.8% and 3.2% respectively, while Spain’s Banco Santander rose 2.2%.
German chip maker Infineon Technologies saw shares rally 5.35% after saying that fiscal first quarter revenue rose 3% to EUR946 million, above expectations for sales of EUR933 million.
German utility providers RWE rose 4% after Morgan Stanley added the stock to its best ideas list. Shares in rival E.On gained 3.7%.
Meanwhile, shares in stock exchange operator Deutsche Boerse rose 1% after European Union regulators vetoed its planned acquisition of NYSE Euronext, operator of the New York Stock Exchange, citing competition grounds.
In London, FTSE 100 rose 1.25% after a report showed that the U.K. manufacturing sector rebounded strongly in January, expanding at the fastest pace in eight months.
Shares in interdealer broker ICAP led gains, jumping 6.25% despite warning that full-year profit will be in a lower range than analysts estimated in November as the euro zone’s sovereign debt crisis curbed investor risk appetite.
U.K. lenders also contributed to gains, with Royal Bank of Scotland rallying 4.6%, Barclays gaining 5.2%, while Lloyds Banking Group added 3.45%.
In the U.S., equity markets pointed to a higher open as markets shrugged off downbeat earnings from online retail giant Amazon.
The Dow Jones Industrial Average futures pointed to a rise of 0.6%, S&P 500 futures signaled a 0.65% increase, while the Nasdaq 100 futures indicated a 0.5% gain.
Later Wednesday, the U.S. Institute for Supply Management was to release a report on manufacturing activity.
During European afternoon trade, the EURO STOXX 50 jumped 1.7%, France’s CAC 40 rallied 1.5%, while Germany’s DAX 30 soared 2.1%.
European equities remained higher after U.S. payroll processing firm ADP said that U.S. non-farm private employment rose by 170,000 in January, falling short of expectations for a gain of 190,000.
Market sentiment was boosted earlier by better-than-expected German PMI data and fresh hopes that talks with Greece’s creditors are close to being concluded.
Shares in the financial sector extended gains. French banks Societe Generale and BNP Paribas, which both have high exposure to Greek sovereign debt soared 5.45% and 3.35% respectively, while German lenders Deutsche Bank and Commerzbank jumped 3% and 3.1%.
Peripheral lenders were also higher, with Italy’s Intesa Sanpaolo and Unicredit surging 4.8% and 3.2% respectively, while Spain’s Banco Santander rose 2.2%.
German chip maker Infineon Technologies saw shares rally 5.35% after saying that fiscal first quarter revenue rose 3% to EUR946 million, above expectations for sales of EUR933 million.
German utility providers RWE rose 4% after Morgan Stanley added the stock to its best ideas list. Shares in rival E.On gained 3.7%.
Meanwhile, shares in stock exchange operator Deutsche Boerse rose 1% after European Union regulators vetoed its planned acquisition of NYSE Euronext, operator of the New York Stock Exchange, citing competition grounds.
In London, FTSE 100 rose 1.25% after a report showed that the U.K. manufacturing sector rebounded strongly in January, expanding at the fastest pace in eight months.
Shares in interdealer broker ICAP led gains, jumping 6.25% despite warning that full-year profit will be in a lower range than analysts estimated in November as the euro zone’s sovereign debt crisis curbed investor risk appetite.
U.K. lenders also contributed to gains, with Royal Bank of Scotland rallying 4.6%, Barclays gaining 5.2%, while Lloyds Banking Group added 3.45%.
In the U.S., equity markets pointed to a higher open as markets shrugged off downbeat earnings from online retail giant Amazon.
The Dow Jones Industrial Average futures pointed to a rise of 0.6%, S&P 500 futures signaled a 0.65% increase, while the Nasdaq 100 futures indicated a 0.5% gain.
Later Wednesday, the U.S. Institute for Supply Management was to release a report on manufacturing activity.