European stocks higher; sentiment surges on banking support
By Peter Nurse
Investing.com - European stock markets traded sharply higher Friday, with sentiment boosted by moves in both Europe and the United States to support under-pressure lenders, likely preventing a full-blown banking crisis.
At 05:00 ET (09:00 GMT), the DAX index in Germany traded 0.7% higher, the CAC 40 in France climbed 0.6% and the FTSE 100 in the U.K. rose 1%.
A number of large U.S. banks injected $30 billion in deposits into First Republic Bank (NYSE: FRC ) on Thursday, moving to support the lender which had been caught up in the backwash triggered by the failure of two other regional U.S. lenders last week.
This followed the announcement late Wednesday that troubled European bank Credit Suisse (SIX: CSGN ) had received a financial lifeline from the Swiss National Bank.
The European Central Bank raised interest rates by 50 basis points on Thursday, suggesting the policymakers remain confident that the region’s banking sector will be able to cope with more monetary tightening even in these troubled times.
Final CPI data for the Eurozone are due later in the session in a thin calendar for economic data releases, and is expected to show that inflation grew 0.8% on the month in February, up 8.5% on the year.
In corporate news, Sanofi (EPA: SASY ) stock rose 0.4% after the drugmaker said it would slash U.S. list prices for its most-prescribed insulin product, Lantus, next year following similar moves by U.S. rivals.
Casino Guichard Perrachon (EPA: CASP ) stock rose 1.8% after the French supermarket group unveiled a fresh stake sale in Brazilian cash-and-carry chain Assai as part of its ongoing plan to address its sizeable debt pile.
Wood Group (LON: WG ) stock rose 3.5% after the deadline by which Apollo Global Management (NYSE: APO ) is required to announce a firm offer for the engineering firm was extended.
Oil prices climbed higher Friday on hope of a response from OPEC and its allies to the week’s sharp selloff on concerns the banking crisis would hurt global economic activity.
Reports indicated that energy ministers from Saudi Arabia and Russia met in Riyadh on Thursday to discuss potential action to support the crude market, which is on course for its biggest weekly loss this year.
The advisory committee of the Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, will meet on April 3.
By 05:00 ET, U.S. crude futures traded 0.8% higher at $68.91 a barrel, while the Brent contract rose 0.7% to $75.20.
Both benchmarks hit their lowest levels in more than a year this week and are set to post weekly falls of around 10%, their biggest since December.
Additionally, gold futures rose 0.6% to $1,933.50/oz, while EUR/USD traded 0.5% higher at 1.0657.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or