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Sep 16, 2013, 04.59 PM IST | Source: Investing.com

European stocks remain higher despite Draghi comments; Dax jumps 1.28%

European stocks remain higher despite Draghi comments; Dax jumps 1.28%

Investing.com - European stocks remained higher on Monday, despite downbeat comments by European Central Bank President Mario Draghi as news that Lawrence Summers withdrew from the contest to succeed Ben Bernanke as the next chairman of the Federal Reserve supported sentiment.

During European afternoon trade, the EURO STOXX 50 advanced 0.88%, France's CAC 40 gained 0.89%, while Germany's DAX 30 jumped 1.08%.

European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains 'fragile' and reiterated that interest rates will remain at current or lower levels for an 'extended period'. The comments came during a speech in Berlin.

Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.

But european stocks remained supported after Lawrence pulled out of the race to be the next Fed chairman, easing investor concerns that he would roll back economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.

Financial stocks remained broadly higher, as French lenders BNP Paribas and Societe Generale jumped 0.96% and 1.45%, while Germany's Deutsche Bank advanced 1.04%.

Among peripheral lenders, Spanish banks Banco Santander and BBVA added 0.24% and 0.29% respectively, while Italy's Intesa Sanpaolo and Unicredit rose 0.37% and 1.28%.

Elsewhere, Royal KPN gained 1.15% following reports it will record a tax-book loss of EUR3.7 billion for the planned sale of its German wireless unit to Spain's Telefonica, reducing the taxes it will have to pay on future earnings.

Also in the upside, Swedish clothing retailer Hennes & Mauritz said sales at stores open for at least a year rose 4% on the year in August, sending shares up 3.63%.

In London, FTSE 100 climbed 0.92%, as U.K. lenders continued to track their European counterparts higher.

Shares in HSBC Holdings advamced 0.69% and Barclays jumped 1.74%, while the Royal Bank of Scotland and Lloyds Banking surged 1.59% and 2.11% respectively.

Meanwhile, mining stocks were mixed, with Glencore Xstrata gaining 1.11% and Rio Tinto up 1.21%, while Polymetal and Fresnillo saw shares dive 6.36% and 13.15%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 1.09% jump, S&P 500 futures signaled a 1.11% rally, while the Nasdaq 100 futures indicated a 1.05% gain.

Later in the day, the U.S. was to release reports on retail sales and producer price inflation, as well as preliminary data from the University of Michigan on consumer sentiment.


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