European stocks turn broadly higher after trade data; Dax up 0.74%

European stocks turned broadly higher on Monday, after positive euro zone trade balance data and as speculation the Federal Reserve could maintain the current level of its monthly bond purchases for an extended period of time supported equity markets. 

During European afternoon trade, the EURO STOXX 50 jumped 1%, France’s CAC 40 advanced 0.74%, while Germany’s DAX 30 climbed 0.74%. 

In a report, Eurostat said the euro zone's trade surplus widened to a seasonally adjusted EUR14.3 billion in September from EUR12.3 billion in August. Analysts had expected the trade surplus to widen to EUR14.2 billion in September. 

Global equities found support last week amid heightened expectations that the Fed will stick to its easy money policies for some time to come, after comments by Fed Chairwoman nominee Janet Yellen last week were seen as supportive of continued stimulus. 

Investors were also focusing on developments in Italy following a split within Silvio Berlusconi's party this weekend, which is a key coalition partner. 

On Saturday, Italian Interior Minister Angelino Alfano said that all five centre-right ministers would remain in government after a split in Silvio Berlusconi's People of Freedom party and that the stability of the ruling coalition was not at risk. 

Financial stocks were mixed, as French lenders BNP Paribas and Societe Generale climbed 0.73% and 1.22%, while Germany's Deutsche Bank rallied 1.09%. 

Among peripheral lenders, Spanish banks BBVA and Banco Santander jumped .143% and 1.70% respectively, while Italy's Intesa Sanpaolo and Unicredit surged 2.97% and 3.18%. 

Elsewhere, Sonova soared 6.51% after predicting that annual earnings would grow 14%, compared with a previous forecast of 9% to 13%. 

In London, FTSE 100 rose 0.49%, supported by strong gains in financial stocks. 

Shares in the Royal Bank of Scotland jumped 1.03% and Barclays gained 0.92%, while HSBC Holdings and Lloyds Banking advanced 0.71% and 0.85% respectively. 

Lloyds Banking earlier said that it agreed to sell its Scottish Widows Investment division to Aberdeen, up 0.65%, for GBP560 million. The lender will receive a 9.9% stake in Scotland’s largest money manager. 

Meanwhile, mining stocks were mixed as Glencore Xstrata rose 0.79% and Vedanta Resources rallied 2.14%, while rivals Randgold Resources and Fresnillo plummeted 2.04% and 3.05%. 

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.25% increase, S&P 500 futures signaled a 0.09% rise, while the Nasdaq 100 futures indicated a 0.05% gain. 

Later in the day, the U.S. was to release private sector data on the outlook for the housing sector.