Banks Drive Early Gains For Europe Stocks
European stock markets moved higher in early action on Monday, shaking off weaker Asia growth data and recouping from steep losses last week, when Spain’s woes hammered sentiment.
The Stoxx Europe 600 index built on opening gains, up 0.8% to 270.51. Last week, the index posted its worst weekly performance since early June, as investors got worried Spain was not getting closer to asking for a bailout.
Late on Friday, after the markets closed, a stress tests of the Spanish banking system showed it has recapitalization needs of 59.3 billion euros ($76.3 billion), which was in line with analysts expectations. See: Spain banks will need around €60 billion in capital
The country stole the spotlight again on Monday, as markets continued to wait for Moody’s Investors Service’s review on Spain’s debt.
The IBEX 35 index rose nearly 1% to 7,777.30, with Banco de Sabadell SA up 1.7% and Banco Santander SA rising 1%.
Economic data out of Asia showed the second straight monthly contraction in manufacturing activity for China, and worsening business sentiment survey from Japan. Read manufacturing sentiment worsens in Japan
Read China manufacturing sentiment contracts a second month
Elsewhere, shares of Xstrata PLC advanced 1.3% after its independent board members agreed to a revised offer from Glencore International PLC . The deal values one Xstrata share at 3.05 Glencore shares. See: Xstrata board backs Glencore revised offer
Other miners were also on the rise. BHP Billiton PLC picked up 0.6% and Anglo American PLC gained 1.2%.
The U.K.’s FTSE 100 index traded up 0.8% at 5,789.54.
In France, Credit Agricole SA jumped 3%, as it said it has started talks to sell its Greek unit Emporiki for €1 ($1.28) to the Greece-based Alpha Bank by the end of this year. See: Crédit Agricole starts talks to sell Greek unit.
The CAC 40 index added 1% to 3,391.51.
Among German stocks, Deutsche Bank AG rose 1.9% and Commerzbank AG gained 1.4%. The DAX 30 index was up 1.1% to 7,299.55.
Marketwatch
