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European stocks turn higher ahead of Brussels meeting; DAX up 0.49%

Published 01/23/2012, 07:45 AM
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Investing.com - European stock markets turned higher on Monday, amid optimism ahead of a meeting of European finance ministers in Brussels to discuss the outcome of Greece’s latest debt talks with private creditors and after a successful German bond auction.

During European afternoon trade, the EURO STOXX 50 advanced 0.68%, France’s CAC 40 climbed 0.50%, while Germany’s DAX 30 rose 0.49%.

On Sunday, Greece’s creditors said they had reached their maximum offer for a voluntary debt swop and said it was now up to the EU and the International Monetary Fund to agree on whether they can accept the deal.

The restructuring agreement is a precondition for Athens to receive its next tranche of bailout funds in order to avert a default when a EUR14.4 billion bond redemption comes due on March 20.

Meanwhile, Germany auctioned EUR2.54 billion of 12-month Treasury bills at an auction which met with strong investor demand at very low yields.

Financial stocks extended earlier gains, led by Italy’s Unicredit with shares surging 10.74% and Intesa Sanpaolo climbing 5%.

French lenders Societe Generale and BNP Paribas also climbed higher with shares soaring 8.45% and 2.02%, while German Deutsche Bank and Commerzbank jumped 3.98% and 12.72%.

Meanwhile, carmakers edged higher with Daimler climbing 1.12% and Volkswagen advancing 0.45%, while BMW rose 0.27%.

Elsewhere, Outokumpu Oyj, Finland’s biggest producer of stainless steel, soared 12.92%, extending earlier gains as it held discussions that may lead to a merger with a unit of ThyssenKrupp AG, Germany’s largest steelmaker.

In London, FTSE 100 advanced 0.79%, boosted by strong gains in the financial sector.

The Royal Bank of Scotland surged 3.02% and Barclays climbed 1.64%, while Lloyds Banking and HSBC Holdings advanced 1.15% and 0.79% respectively.

The energy sector also remained on the upside as shares in British Petroleum jumped 2.52%, while mining giants Rio Tinto and Bhp Billiton rose 1.38% and 0.82%.

Meanwhile, Thomas Cook declined 3.33% after the Financial Times reported the company’s bookings in the first half of January fell 33% compared with the same period last year.

In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.20%, S&P 500 futures signaled a 0.14% gain, while the Nasdaq 100 futures indicated a 0.19% increase.

Financial markets in China, Hong Kong, South Korea, Taiwan and Singapore were closed to welcome in the Chinese Year of the Dragon.


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