European stocks rally on EFSF hopes; DAX surges 3.3%

Forexpros - European stock markets rallied on Tuesday, as hopes that euro zone policy makers will act to support the region's struggling economy helped lift sentiment, boosting shares in the financial sector.During European morning trade, the EURO STOXX 50 rallied 3.1%, France's CAC 40 climbed 2.9%, while Germany's DAX 30 jumped 3.3%.Market sentiment was supported by speculation that euro zone leaders are considering ways to beef up the euro zone's bailout fund, the European Financial Stability Facility.But investors remained cautious ahead of votes on the EFSF programmed later in the week, as the measures have to be passed by all of the currency bloc's governments before steps to expand its role can be implemented.Shares in French lenders led markets higher with BNP Paribas soaring 8.79% and shares in Societe Generale surging 8.34%, while Germany's Deutsche Bank jumped 7.59%.Peripheral lenders were also up, with Italian Intesa Sanpaolo climbing 5.02% and Unicredit rising 3.88%, while Spain's Banco Santander saw shares gain 2.77%.Meanwhile, shares in German truckmaker MAN surged 7.4% after European regulators approved Volkswagen's planned takeover of the company. Volkswagen shares jumped 3.45%.In London, commodity-heavy FTSE 100 gained 2.09% as shares in raw material producers posted strong gains, tracking a rebound in commodity prices. Mining giants Rio Tinto and BP climbed 5.21% and 3.68%, while copper producers Kazakhmys and Xstrata surged 7.71% and 5.99% respectively.U.K. lenders also performed strongly, as Barclays saw shares jump 4.28% and Royal Bank of Scotland climbed 3.44%, while shares in Lloyds Banking Group advanced 2.87%. Life insurance companies, whose fortunes are closely linked to stock market movements, also added to gains, with Aviva shares rising 4.75%, while Legal & General Group saw shares add 2.62%. Elsewhere, U.S. equity markets pointed to a broadly higher open. The Dow Jones Industrial Average futures pointed to a gain of 2.53%, S&P 500 futures signaled an increase of 2.33%, while the Nasdaq 100 futures indicated a 1.24% gain. Later in the day, a U.S. report on consumer confidence was to be released, while Federal Open Market Committee member Richard Fisher was also due to speak.
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