European stocks broadly higher; DAX gains 0.75%

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Forexpros - European stock markets were higher on Monday, erasing earlier losses as shares in the financial and energy sectors led gains, while U.S. future indices pointed to a broadly higher open on Wall Street.

During European morning trade, the EURO STOXX 50 jumped 1.3% France's CAC 40 rallied 1.6%, while Germany's DAX 30 advanced 0.75%

Shares in the beaten-up financial sector found support amid speculation the European Central Bank was buying Italian and Spanish government debt in an effort to ease pressure on the region's third and fourth largest economies.

Italian lenders Unicredit and Intesa Sanpaolo saw shares climb 3.4% and 3.3% respectively, while Spain's Banco Santander advanced 1.1%.

Major European lenders were also higher, with France's Societe Generale and BNP Paribas adding 2.4% and 1.5% respectively, while Commerzbank shares rose 1.1%.

Meanwhile, shares in the largest international oil company operating in Libya, Italy's Eni SpA surged 5.3% as Libya's six-month civil war appeared close to an end, triggering speculation oil exports from the OPEC member would resume in the near-term.

On the downside, automakers led losses as fears over the global economic recovery weighed on earning prospects. Europe's largest automaker Volkswagen saw shares drop 1.1%, rival BMW saw shares slump 2.2%, while French automaker Renault declined 1%.

In London, the commodity-heavy FTSE 100 jumped 1.5% as shares in raw material producers led gains after metal and oil prices advanced on the New York Mercantile Exchange, boosting earnings prospects for miners and energy explorers.

Mining giants BHP Billiton and Rio Tinto climbed 2.35% and 1.45% respectively, copper producer Xstrata saw shares rise 2.15%, while oil majors British Petroleum and Royal Dutch Shell advanced 2.3% each.

Meanwhile, U.K. lenders tracked their European counterparts higher, with Barclays gaining 1.1% and Lloyds Banking Group rising 1.8%.

The outlook for U.S. equity markets was upbeat. The Dow Jones Industrial Average futures pointed to a gain of 0.9%, the S&P 500 futures jumped 1.05%, while the Nasdaq 100 futures indicated a strong gain of 1.3%.

Later in the day, the U.S. was to publish a report on mortgage delinquencies.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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