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European stocks open higher, recover from oil drop; Dax rallies 1.06%

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Investing.com -

Investing.com - European stocks opened higher on Monday, as they recovered from Friday's drop in oil prices to an 11-trough.

Trading volumes were expected to remain limited ahead of the Christmas Holiday.

During European morning trade, the EURO STOXX 50 rose 0.27%, France's CAC 40 gained 0.37%, while Germany's DAX 30 rallied 1.06%.

Markets were hit after crude oil prices fell to 34.29$ on Friday, the lowest level since 2004, amid renewed worries over a global supply glut.

In early European morning hours, crude oil futures for February delivery were down 1.15% at 35.66$ a baril.

Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) eased 0.02% and 0.11%, while Germany's Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) declined 0.11% and 0.36%.

Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) fell 0.28%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) plummeted 2.71% and 2.95%.

Elsewhere, TeliaSonera AB (ST:TLSN) jumped 1.15% after the Swedish phone company sold its stake in Nepalese phone carrier Ncell to Axiata Group Bhd. for more than $1 billion,

The move was the company's first major step in a plan to exit Asian and former Soviet markets to focus on Europe and its home Nordic region.

In London, commodity-heavy FTSE 100 gained 0.40%, boosted by strong gains in the mining sector.

Shares in Bhp Billiton (L:BLT) climbed 0.74% and Rio Tinto (L:RIO) advanced 0.94%m while Anglo American (L:AAL) and Glencore (L:GLEN) surged 1.99% and 2.83% respectively.

BG Group PLC (L:BG) added to gains, with shares up 1.05% after its largest investor Capital Group sold about £100 million shares in the oil and gas company.

The move came following reports the UK company could be acquired by its Anglo-Dutch rival, Royal Dutch Shell (L:RDSa). The European Union antitrust regulators recently approved Royal Dutch Shell's plans to buy BG Group (L:BG), which will lead to the creation of one of the richest and biggest oil companies.

Financial stocks were also mostly higher, as HSBC Holdings (L:HSBA) rose 0.34% and Barclays (L:BARC) gained 0.51%, while the Royal Bank of Scotland (L:RBS) climbed 0.58% and Lloyds Banking (L:LLOY) rallied 1.08%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.68% gain, S&P 500 futures signaled a 0.80% climb, while the Nasdaq 100 futures indicated a 0.79% increase.

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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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