Investing.com - European stocks held gains on Monday, despite the release of weak euro zone industrial production data, as markets recovered from the previous week''s sell off due to concerns over the health of Portugal''s banking sector.
During European afternoon trade, the DJ Euro Stoxx 50 climbed 0.56%, France’s CAC 40 advanced 0.59%, while Germany’s DAX gained 0.76%.
Official data showed that industrial production in the euro zone dropped 1.1% in May, compared to expectations for a 1.2% decline, after a 0.7% rise in April, whose figure was revised down from a previously estimated 0.8% gain.
Concerns over the fiscal stability of Portugal’s Banco Espirito Santo fuelled a sharp selloff in markets on Thursday, amid fears over the risk of contagion. Concerns eased after Portugal’s central bank said Friday it was satisfied that the lender is able to fulfill its capital requirements.
Investors remained cautious however ahead of testimony on monetary policy by European Central Bank head Mario Draghi later in the day. Draghi was set to speak at a hearing before the Economic and Monetary Affairs Committee of the European Parliament.
Financial stocks turned mixed, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) slipped 0.16% and 0.01%, while Germany''s Deutsche Bank (XETRA:DBKGn) gained 0.49%.
Among peripheral lenders, Italy''s Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) declined 0.68% and 0.73% respectively, while BBVA (MADRID:BBVA) fell 0.29% and Banco Santander (MADRID:SAN) inched up 0.06% in Spain.
Banco Espirito Santo''s board appointed Vitor Bento to be chief executive officer at a meeting on Sunday after the Portuguese central bank urged the lender to make changes to its executive management earlier than previously planned.
Trading in Banco Espirito Santo was suspended last Thursday after it disclosed an exposure of €1.18 billion to companies of Grupo Espirito Santo.
Elsewhere, Airbus Group (PARIS:AIR) rallied 1.55% after saying it will go ahead with a project to upgrade and re-engine its A330 plane, extending the life of the wide-body model.
In London, FTSE 100 advanced 0.66%, still supported by Shire (LONDON:SHP), up 2.72%, after the drugmaker said it is willing to recommend an offer from AbbVie (NYSE:ABBV) to shareholders.
Mining stocks added to gains, as Glencore Xstrata (LONDON:GLEN) and Rio Tinto (LONDON:RIO) climbed 0.54% and 0.61% respectively, while Bhp Billiton (LONDON:BLT) jumped 1.11%.
In the financial sector, stocks also remained mostly higher. Shares in Lloyds Banking (LONDON:LLOY) edged up 0.10% and the Royal Bank of Scotland (LONDON:RBS) gained 0.60%, while HSBC Holdings (LONDON:HSBA) advanced 0.57%. Barclays (LONDON:BARC) underperformed on the other hand, down 0.46%.
In the U.S., equity markets pointed to a higher open. The Dow 30 futures pointed to a 0.33% gain, S&P 500 futures signaled a 0.33% rise, while the Nasdaq 100 futures indicated a 0.50% increase.
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