Europe midday: Stocks on a high after Wall street rally and Santander profits

European stocks gained from a rise in momentum from US markets overnight and one of its biggest lender’s Santander’s boost in earnings.

At midday the benchmark Stoxx Europe 600 rose 1.01%, Germany’s DAX was up 1.31% and France’s CAC 40 was 1.03% higher.

Meanwhile oil prices were under the cosh, with both West Texas Intermediate and Brent crude falling 1% to $52.65 and $54.88 per barrel.

Trader at City of London Markets Markus Huber said: “European stocks are trading higher this morning receiving a boost from strong markets in Asia and the US overnight. It appears that optimism regarding acceleration of global growth is returning. Partially because so far it seems that president Trump is fairly eager to proceed with putting his election campaign promises concerning the US economy into reality by pushing ahead and via executive orders.”

On the data front, German business confidence unexpectedly deteriorated in January, according to a widely-followed survey.

The Ifo Institute’s business climate index fell to 109.8 from 111.0 in December, missing expectations for a reading of 111.3.

Meanwhile, the current assessment index rose to 116.9 in January from 116.7 the month before, while the expectations index dropped to 103.2 from 105.5.

Holger Schmieding at Berenberg said: "While we should hesitate to read too much into somewhat volatile monthly data, the January correction in expectations could suggest that some German companies are starting to worry about the risks of rising protectionism.”

On the corporate side, Spanish lender Santander soared as it’s reported a 4% rise in net profit in the fourth quarter compared to last year due to higher fees and stronger than expected lending income.

Chilean copper giant Antofagasta rallied after reporting a strong fourth quarter performance, with copper production of 205,500 tonnes, up 13.8% versus the previous quarter, lifting production for the full year to just under 710,000 tonnes, 12.5% higher than the prior year.

Mining giant BHP Billiton was also on the front foot after it posted its operational review for the half year to 31 December, with record production achieved at Western Australia Iron Ore, and total iron ore production of 118 Mt - a 4% rise year-on-year.

Fresnillo nudged a touch higher after achieving record production of gold and silver in 2016, even though the miner experienced some delays in implementing its turnaround plan.

Elsewhere, Novartis gained ground on news it may spin off its ailing eye-care business Alcon due to a slower-than-expected turnaround in the business.