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Euro shares higher on Greek austerity approval; DAX up 0.68%

Published 02/13/2012, 12:10 PM
Updated 02/13/2012, 12:12 PM
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Investing.com -  European stocks closed higher Monday, after Greek lawmakers approved the austerity measures required to obtain the second economic bail out package.
 
After the close of European trade, the EURO STOXX 50 gained 0.43%, France's CAC 40 climbed 0.34%, while Germany's DAX added 0.68%. Meanwhile, in the U.K. the FTSE 100 moved higher by 0.91%.
 
Greek Prime Minister, Lucas Papademos obtained parliamentary approval for the spending cuts by a vote of 199 to 74 for the austerity plans.
 
Euro zone finance ministers are meeting on February, 15 to decide whether or not Greece should be approved for its second economic bailout package.
 
Germany and European Commission appear pleased with the austerity plans, increasing hopes that the bailout will be approved.
 
Meanwhile, Italian borrowing costs declined at a debt auction today. Italy’s treasury sold EUR8.5 billion 365 day bills and EUR3.5 billion 127 day bills at lower rates than previous sales.
 
In German news, the euro zone’s largest economy sold EUR3.01 billion of six month bills at an average yield of 0.0761%, up from a negative yield at a sale held on January 9.
 
Mining shares led the euro zone stock rally with Rio Tinto and BHP Billiton, the world’s largest miners, climbing 1.8% and 1.1% respectively.
 
Miner, Anglo American also advanced 2.3% on the session.
 
Cable & Wireless soared 46% after Vodafone said it is investigating making an offer for the company.
 
The Greek austerity agreement lifted the National Bank of Greece 9%, as well as adding 1.6% to Germany’s Commerzbank and 1.5% to Switzerland’s UBS.
 
In bearish news, French banks Credit Agricole gave back 4% and Societe Generale fell 3.1% after the French government ended a ban on short selling.
 
Royal Boskalis gave back 6.4% after the dredging company failed to obtain a major Australian contract.
 
U.S. stocks followed Europe higher midsession with the Dow adding 0.40%, the S&P500 climbing 0.48% and the Nasdaq advancing 0.65%.
 
Investors are awaiting Japan’s monetary policy statement, France’s non farm payroll numbers, and retail sales, import numbers and a talk by Treasury Secretary, Timothy Geithner in the U.S. on Tuesday.



 
 
  

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