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European stocks higher on Greece hopes; DAX up 0.90%

Published 02/09/2012, 04:01 AM
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Investing.com - European stock markets were higher on Thursday, as sentiment was supported by hopes Greece was nearing a bailout deal and will ultimately avoid a sovereign debt default.

During European morning trade, the EURO STOXX 50 rose 0.73%, France’s CAC 40 climbed 0.64%, while Germany’s DAX 30 jumped 0.90%.

Coalition leaders stopped short of signing off on austerity measures on Wednesday evening after agreeing on all points of a bailout package except pension cuts.

But sentiment remained supported after officials said talks with international lenders would continue so a deal could be concluded before a meeting of euro zone finance ministers later in the day.

Auto makers were among the top gainers with Daimler surging 4.79%, while Volkswagen and BMW jumped 2.12% and 2.44%.

Financial stocks were also broadly higher as shares in France’s BNP Paribas and Societe Generale climbed 0.69% and 2.64%, while German lenders Deutsche Bank and Commerzbank added 0.61% and 3.81% respectively.

Meanwhile, Credit Suisse Group, the second- biggest Swiss bank, rose 1.06% although it announced a loss in the fourth quarter for the first time since 2008, hurt by “adverse” markets and costs to reorganize the investment bank.

In London, FTSE 100 rose 0.42%, supported by gains in energy stocks while investors eyed the Bank of England’s rate statement later in the day.

British Petroleum saw shares jump 1.21% after saying that it is negotiating with U.S. officials to settle pollution claims over the 2010 Gulf of Mexico oil spill that may leave the company liable for as much as USD17.6 billion in fines.

Meanwhile, Cairn Energy soared 2.25% and Aggreko, the world’s largest power generation company, gained 1.03%.

Mining giants Bhp Billiton added to gains with shares rising 0.21%, while copper producers Xstrata and Kazakhmys added 0.99% and 0.67%.

Elsewhere, U.K. lenders were mixed. Shares in Barclays jumped 1.02% and HSBC Holdings advanced 0.90%, while the Royal Bank of Scotland slumped 0.73%.

In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a rise of 0.05%, S&P 500 futures signaled a 0.01% loss, while the Nasdaq 100 futures indicated a 0.04% gain.

Later in the day, the European Central Bank was to announce its benchmark interest rate, followed by a press conference, while the U.S. was to publish government data on unemployment claims.


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