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European stocks higher on Greece hopes; DAX up 1.21%

Published 10/12/2011, 05:22 AM
Updated 10/12/2011, 05:22 AM

Investing.com - European stock markets were up on Wednesday, erasing earlier losses as fresh hopes that Greece will receive its next tranche of financial aid boosted market sentiment.

During European morning trade, the EURO STOXX 50 rose 0.93%, France’s CAC 40 climbed 0.87%, while Germany’s DAX 30 jumped 1.21%.

On Tuesday, officials from the European Union, International Monetary Fund and European Central Bank said Greece was likely to receive its next bailout package next month and said Athens has made “important progress” in fiscal consolidation.

Meanwhile Slovakia's parliament rejected the plan to expand the power of the euro zone's bailout fund. The outgoing government said it still hoped to pass the measure by the end of the week.

Car makers led gains, with shares in Germany's Daimler soared 3.41% and BMW jumped 2.01%, while Italian company Fiat surged 3.37%.

Telecom companies also contributed to gains, with France's Alcatel-Lucent surging 2.00% and Bouygues jumping 2.36%, while Telecom Italia soared 3.04%.

French and German lenders edged slightly higher, with shares in Deutsche Bank rising 1.08%, while Societe Generale and BNP Paribas rose 1.47% and 0.45% respectively.

Meanwhile, peripheral lenders were mixed, as Italy's Intensa Sanpaolo saw shares climb 1.28% and Unicredit dropped 0.97%, while shares in Spanish group Banco Santander tumbled 1.29%.

In London, commodity-heavy FTSE 100 was up 0.48%, tracking gains in commodity prices. 

Copper producers were among the top gainers with shares in Kazakhmys and Xstrata surging 2.18% and 1.68%.

Mining giants BHP Billiton and Rio Tinto also saw shares climb 0.50% and 1.07% respectively, while British Petroleum jumped 1.56%.

Shares in U.K. lenders were mixed, as Lloyds Banking fell 0.50%, while Barclays soared 1.94% and the Royal Bank of Scotland advanced 1.19%.

Elsewhere, U.S. equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.83%, S&P 500 futures signaled a 0.84% increase, while the Nasdaq 100 futures indicated a 0.89% advance.

Later in the day, European Commission President Jose Barroso was to present proposals on bank recapitalization to the European Parliament. 

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