Stocks end up 2.2% as banks, insurers rally; oil recovers – CNBC

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Shares of Unicredit ended nearly 5 percent higher on the expectation the Italian bank would soon formally launch the search for a new chief executive. Other banks in the region also rallied, with BMPS jumping 10.5 percent and Intesa Sanpaolo up over 6 percent.

Europe’s best performing stock sector was insurance, closing 3.8 percent up. Old Mutual jumped almost 6 percent after the financial group confirmed it had received multiple approaches from third parties to buy its stake in Old Mutual Asset Management. However, the firm said there was “no certainty” this would lead to any transaction.

In the commodities space, oil prices fluctuated during the session, but showed signs of recovery as traders awaited U.S. stockpiles data. Prices have been weighed down by a strong dollar, and glut concerns as production from top exporters increases. Both Brent and U.S. crude traded below $49 per barrel at Europe’s stock market close.

The basic resources stock sector ended almost 2 percent up. However. Randgold Resources closed down 3.2 percent, as spot gold prices declined.

In stocks markets overseas, Asia finished mostly lower, with China and Japan posting solid declines. Meanwhile, U.S. stocks were sharply higher Tuesday, as investors digested the latest domestic data releases.

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Stocks end up 2.2% as banks, insurers rally; oil recovers – CNBC