European Markets Extended Recovery Rally On Easing Brexit Concerns

(RTTNews) - The European markets ended Wednesday's session solidly in positive territory, extending yesterday's recovery following the Brexit slump. Markets in Europe sold off sharply last Friday and this Monday after U.K. voters shocked investors around the globe by voting in favor of an exit from the European Union.

Insurance stocks added to the strong gains of the previous session and telecoms also turned in a strong performance. Rising commodity prices have also helped to fuel the recovery. Crude oil prices continue to regain ground on prospects of slower production and supply declines. A weakening in the U.S. dollar has also provided a boost to precious metal prices, driving mining and resource stocks higher.

U.K. Prime Minister David Cameron said the nation faces "choppy waters' after Britons voted to exit the European Union last week.

It will not be appropriate to suspend fiscal rule, he told the MPs in the House of Commons on Wednesday.

Further, he said keeping the U.K. together is of paramount importance.

The Euro Stoxx 50 index of eurozone bluechip stocks increased 2.66 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 2.77 percent.

The DAX of Germany climbed 1.75 percent and the CAC 40 of France rose 2.60 percent. The FTSE 100 of the U.K. gained 3.58 percent and the SMI of Switzerland finished higher by 1.82 percent.

In Frankfurt, industrial group Siemens gained 1.77 percent on a report it plans to invest 1 billion euros over the next five years in a new startups unit.

Utility E.ON leaped 4.95 percent and peer RWE rose 4.57 percent.

In Paris, Technip soared 4.77 percent after signing a pact with GE Oil & Gas to explore digital solutions for new LNG projects. Total SA also gained 3.77 percent.

In London, telecom giant Vodafone Group rose 2.06 percent after saying it is considering moving its headquarters out of the U.K.

BT Group jumped 5.13 percent after revising financials to reflect organizational changes that came into effect on April 1, 2016.

Dixons Carphone declined 1.93 percent after its full year 2016 earnings per share fell to 15.1 pence from 21.2 pence a year ago.

Mining stocks turned in a solid performance due to rising metal prices. Fresnillo surged 9.52 percent and Anglo American climbed 8.06 percent. Antofagasta increased 6.70 percent and BHP Billiton added 3.01 percent. Glencore jumped 5.96 percent.

Travel-related stocks remained under selling pressure, with TUI losing 3.82 percent, after three suspected Islamic State group suicide bombers targeted the international terminal of Istanbul's Ataturk airport, killing 36 people and wounding 147 others.

Eurozone economic sentiment eased slightly in June ahead of the Brexit vote, the results off a survey by European Commission revealed Wednesday.

After rising for two straight months, the economic sentiment index slid marginally to 104.4 in June from revised 104.6 in May. The score was expected to remain at 104.7, unchanged from the initial estimate for May.

Germany consumer confidence is set to improve in July despite concerns about Brexit, survey data from the market research group GfK showed Wednesday. The forward-looking consumer sentiment index rose to 10.1, while it was expected to remain unchanged at 9.8.

German consumer prices accelerated as expected in June, preliminary estimate from Destatis showed Wednesday. Consumer prices rose 0.3 percent from last year, in line with expectations, following a 0.1 percent increase in May.

U.K. house price growth accelerated more than expected in June, data from the Nationwide Building Society showed Wednesday. House prices climbed 5.1 percent annually, following a 4.7 percent rise in May. Economists had forecast prices to grow 4.9 percent. This was also the fastest growth in three months.

U.K. mortgage approvals increased in May and secured lending accelerated from April, the Bank of England said Wednesday. The number of loans approved for house purchases rose to 67,042 from 66,205 in April. It was expected to fall to 65,000.

While the Commerce Department released a report on Wednesday showing a slightly smaller than expected increase in U.S. personal income in the month of May, the report also said personal spending climbed in line with economist estimates.

The report said personal income edged up by 0.2 percent in May after rising by an upwardly revised 0.5 percent in April.

Economists had expected income to rise by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month.

Meanwhile, the Commerce Department also said personal spending climbed by 0.4 percent in May after spiking by an upwardly revised 1.1 percent in April. Spending had been expected to increase by 0.4 percent compared to the 1.0 percent jump originally reported for the previous month.

After reporting increases in U.S. pending home sales in the three previous months, the National Association of Realtors released a report on Wednesday showing that pending sales pulled back by more than expected in the month of May.

NAR said its pending home sales index slid 3.7 percent to 110.8 in May from a downwardly revised 115.0 in April. Economists had expected the index to drop by 1.0 percent.