EU stocks open abruptly upper, emphasis on Fed; Dax hurdles 1.37%


European stocks opened sharply higher on Wednesday, as investors eyed the release of euro zone inflation data later in the day and amid growing expectations the Federal Reserve will hold off from raising interest rates this week.

During European morning trade, the EURO STOXX 50 rallied 1.29%, France’s CAC 40 surged 1.34%, while Germany’s DAX 30 jumped 1.37%.

Investors remained cautious amid speculation that mixed U.S. economic reports and recent volatility in global financial markets will prompt the U.S. central bank to refrain from hiking interest rates on Thursday.

Fed Chair Janet Yellen has said that an interest rate increase is data dependent but has also indicated that she expects to begin raising rates before the end of the year.

Financial stocks were broadly higher, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) rallied 1.15% and 1.03%, while Germany’s Deutsche Bank(XETRA:DBKGn) and Commerzbank (XETRA:CBKG) added 0.16% and 0.22%.

Among peripheral lenders, Italy’s Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) gained 0.56% and 0.98% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) advanced 0.43% and 0.70%.

Elsewhere, Swiss luxury jewelry maker Compagnie Financiere Richemont SA (SIX:CFR) saw shares surge 6.73% after saying that sales for the five months ending August 31 increased by 4%, exceeding analysts’ projections.

Inditex (MADRID:ITX) added to gains, with shares up 3.44% after the owner of Zara reported a 26% year-on-year increase in profit.

In London, commodity-heavy FTSE 100 advanced 0.70%, helped by Glencore (LONDON:GLEN), whose shares jumped 2.07% after saying it has raised $2.5 billion through a share placement as part of its strategy to cut its debt.

European stocks opened sharply higher on Wednesday, as investors eyed the release of euro zone inflation data later in the day and amid growing expectations the Federal Reserve will hold off from raising interest rates this week.

During European morning trade, the EURO STOXX 50 rallied 1.29%, France’s CAC 40 surged 1.34%, while Germany’s DAX 30 jumped 1.37%.

Investors remained cautious amid speculation that mixed U.S. economic reports and recent volatility in global financial markets will prompt the U.S. central bank to refrain from hiking interest rates on Thursday.

Fed Chair Janet Yellen has said that an interest rate increase is data dependent but has also indicated that she expects to begin raising rates before the end of the year.

Financial stocks were broadly higher, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) rallied 1.15% and 1.03%, while Germany’s Deutsche Bank(XETRA:DBKGn) and Commerzbank (XETRA:CBKG) added 0.16% and 0.22%.

Among peripheral lenders, Italy’s Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) gained 0.56% and 0.98% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) advanced 0.43% and 0.70%.

Elsewhere, Swiss luxury jewelry maker Compagnie Financiere Richemont SA (SIX:CFR) saw shares surge 6.73% after saying that sales for the five months ending August 31 increased by 4%, exceeding analysts’ projections.

Inditex (MADRID:ITX) added to gains, with shares up 3.44% after the owner of Zara reported a 26% year-on-year increase in profit.

In London, commodity-heavy FTSE 100 advanced 0.70%, helped by Glencore (LONDON:GLEN), whose shares jumped 2.07% after saying it has raised $2.5 billion through a share placement as part of its strategy to cut its debt.

Other mining stocks were mostly lower, as Bhp Billiton (LONDON:BLT) edged down 0.09% andFresnillo (LONDON:FRES) lost 1.11%, while Rio Tinto (LONDON:RIO) tumbled 1.63%.

In the financial sector, stocks were broadly higher. Shares in Lloyds Banking (LONDON:LLOY) and the Royal Bank of Scotland (LONDON:RBS) added 0.15% and 0.30% respectively, while Barclays(LONDON:BARC) jumped 1.06% and HSBC Holdings (LONDON:HSBA) rallied 1.16%.

Burberry Group (LONDON:BRBY) was also on the upside, with shares surging 2.74%, after the luxury retailer became the first fashion brand on Tuesday to launch a channel on Apple Inc (NASDAQ:AAPL).’s music service.

In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a 0.09% gain, S&P 500 futures signaled a 0.03% uptick, while the Nasdaq 100 futures indicated a 0.10% rise.

In the financial sector, stocks were broadly higher. Shares in Lloyds Banking (LONDON:LLOY) and the Royal Bank of Scotland (LONDON:RBS) added 0.15% and 0.30% respectively, while Barclays(LONDON:BARC) jumped 1.06% and HSBC Holdings (LONDON:HSBA) rallied 1.16%.

Burberry Group (LONDON:BRBY) was also on the upside, with shares surging 2.74%, after the luxury retailer became the first fashion brand on Tuesday to launch a channel on Apple Inc (NASDAQ:AAPL).’s music service.

In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a 0.09% gain, S&P 500 futures signaled a 0.03% uptick, while the Nasdaq 100 futures indicated a 0.10% rise.

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