European Markets Support Global Stock Rally

European markets opened higher on Thursday. This follows other equity markets around the globe while market sentiment was all in all positive.

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The EURO STOXX 50 rose 0.69 percent. France’s CAC 40 was up 0.77 percent, while Germany’s DAX 30 climbed 0.98 percent by 03.30 a.m. ET (07:30 GMT).

European equities grew stronger due to the new set of rules implemented on Wednesday in the local financial sector.

Mifid II is a new legislation launched by the European Commission. It was introduced after the original set was seen to be lacking following the financial crisis of 2008.

Financial stocks were also higher with French lenders BNP Paribas and Societe Generale climbed 0.94 percent and 0.99 percent respectively. Germany’s Commerzbank, on the other hand, was up 0.50 percent.

Other lenders that supported the financial stocks were Italy’s Intesa Sapaolo up 0.07 percent and Unicredit, rising 0.63 percent. Spanish banks BBVA and Banco Santander climbed 0.44 percent and 0.73 percent respectively.

In another place, Siemens AG rose 1.32 percent following its announced investment in New York-based LO3 Energy. The LO3 Energy is a companu that develops blockchain-enabled local energy marketplace.

Allianz also supported the gains as its shares rose 0.99 percent after news spread that its property unit intends to double investments in Asia over the course of three years.

London’s FTSE 100 rose 0.14 percent with help from CRH whose shares climbed 1.01 percent. The sudden rise was the result of the group’s confirmation that disposal of its Americas distribution Division to Beacon Roofing was completed. It gained a total of $2.63 billion as cash consideration.

Help from Autos and Drag from Some Retailers

December’s U.S. car sales data surpassed expectations. This resulted in a boost of 1.5 percent for the European automakers.

Italian automaker Fiat Chrysler was 4 percent, hitting a new record high, one of STOXX’s top gainers. Alternatively, Daimler, Volkswagen, and BMW led the DAX.

Remy Cointreau was seen lagging, which was a rare sight. It fell 2.9 percent following Investec’s reduction of the stock due to Chinese anti-corruption measures possibly affecting products like cognac.

UK’s small-cap space Debenhams shares dropped 19 percent following a profit warning. The stock was set for the worst of its daily falls yet after a statement that shoppers were not lured in by the price cuts.

A dent in the other UK retailers was made due to disappointment at the retailer’s performance. This overshadowed the other retailers’ strong rally on Wednesday following Next’s Christmas trading beat.

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