Investing.com - European stocks were higher on Monday, as markets recovered from the previous week''s sell-off due to concerns over the health of Portugal''s banking sector and as investors eyed the release of euro zone industrial production data later in the day.
During European morning trade, the DJ Euro Stoxx 50 climbed 0.59%, France’s CAC 40 advanced 0.40%, while Germany’s DAX gained 0.45%.
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.
Financial stocks were broadly higher, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) jumped 1.18% and 0.92%, while Germany''s Deutsche Bank (XETRA:DBKGn) gained 0.75%.
Among peripheral lenders, Italy''s Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) rallied 1.38% and 1.68% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) advanced 0.95% and 1.07%.
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) climbed 1.02% 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 0.41%, led by Shire (LONDON:SHP), up 2.47%, 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) rose 0.28% and Rio Tinto (LONDON:RIO) climbed 0.44%, while Vedanta Resources (LONDON:VED) advanced 0.62% and Bhp Billiton (LONDON:BLT) jumped 1.02%.
In the financial sector, stocks were also mostly higher. Shares in Lloyds Banking (LONDON:LLOY) edged up 0.17% and the Royal Bank of Scotland (LONDON:RBS) gained 0.52%, while HSBC Holdings (LONDON:HSBA) advanced 0.79%. Barclays (LONDON:BARC) underperformed on the other hand, down 0.70%.
Meanwhile, shares in Tesco (LONDON:TSCO) surged 2% after Cantor Fitzgerald LP recommended investors buy the shares in the retailer.
In the U.S., equity markets pointed to a higher open. The Dow 30 futures pointed to a 0.15% gain, S&P 500 futures signaled a 0.18% rise, while the Nasdaq 100 futures indicated a 0.25% increase.
Later in the day, the euro zone was to release data on industrial production.
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