European equity markets rebounded from earlier losses and posted strong gains in today’s trading session. The CAC, DAX, IBEX and London benchmark index gained between 0.57% and 1%, supported by insurance stocks and banks.
The fairly disappointing corporate earnings results from Google and IBM initially added pressure to the markets. However, global equities recovered after the release of the robust US economic data including a better reading for weekly jobless claims and the Philly Fed business index. Strong corporate earnings from Morgan Stanley and Goldman Sachs lifted the UK banks and increased risk appetite.
In London, Barclays, Lloyds, RBS and HSBC posted strong gains, climbing between 0.5% and 3.8%, while insurers Resolution and Prudential also surged by 2.6% and 2.36%, respectively.
Trading volumes were fairly thin as we approach the Easter holiday break.
The British pound rallied in today’s session to reach a 4-year high against the US dollar, trading around 1.682.
The US and European markets are closed from tomorrow for the Easter holiday.