LONDON (SHARECAST) - European markets made a sparkling start to the week with banks and miners leading the way.
Across the markets triple digit rises were the order of the day. The French CAC 40 index rose 108 points to 3,752 while in Frankfurt the DAX soared 144 points to 6,292. The Swiss market index advanced 120 points to 6,321.
Banks received a lift forecast-beating quarterly figures from BNP Paribas and HSBC, both of which rose 5.3% on the day.
BNP Paribas, France's biggest listed bank, was wanted after reporting a better-than-expected 31% rise in second-quarter net profit on Monday.
Net profit for the three months to July rose to €2.1bn up from €1.6bn a year earlier. Revenue increased 12% to €11.17bn.
The Paris-based bank said the performance "demonstrated the robustness of its diversified, integrated and customer-driven banking model."
HSBC gave a signal that the banking sector may be returning to normality after the credit crisis as it posted interim profits that more than doubled on the back of a sharp reduction in bad debts.
In the half year to June 30, the bank saw pre-tax profits jump to US$11.1bn from $5bn over the same period the previous year.
Societe Generale, Credit Agricole, Commerzbank and UBS were also in demand.
With copper prices climbing for the fourth day on the spin there was no shortage for mining stocks such as BHP Billiton, Rio Tinto and Xstrata, the latter ahead of results expected tomorrow. Steelmakers ThyssenKrupp and Salzgitter also received a boost from firmer metals prices.
Cables and wires maker Nexans moved higher after it raised revenue and profits guidance for the second half of the year. Meanwhile building leviathan Vinci headed north after it won a contract to build and operate a new airport in western France.
Industrial gases maker Linde advanced after second quarter profit jumped a forecast-beating 86%. Elsewhere in Germany chipmaker Infineon jumped after it said talks on selling its wireless solutions unit have made “significant progress”.
On the downside, TNT was on offer after the delivery company’s second-quarter operating profit missed forecasts, dropping 69% to €55m.
The Dutch firm also said it will fully split its mail and express operations into separate companies.
German retailer Metro was also left on the shelf after it announced that net income fell to €44m from €52m a year earlier, well below market expectations of €87m, as the company took a hit for restructuring costs.
On the economic front the Markit eurozone manufacturing purchasing managers index rose to a better-than-expected 56.7 in July from 55.6 in June.
