European stocks edge higher, Greece in focus; DAX up 0.49%

Investing.com - European stock markets edged higher on Thursday, as investors eyed austerity debates in Greece while gains were limited by a string of disappointing earnings reports.

During European morning trade, the EURO STOXX 50 rose 0.30%, France’s CAC 40 advanced 0.37%, while Germany’s DAX 30 added 0.49%.

Markets were eyeing Greece as the country’s parliament was debating legal changes ahead of a massive debt restructuring to keep the country from defaulting.

The legislation, to be put to vote later Thursday, was part of the new EUR130 bailout deal approved by euro zone leaders earlier in the week to put the country back in a position to reach a sustainable debt level by 2020.

Meanwhile, shares in Credit Agricole tumbled 2.14% as France’s third-largest lender reported a fourth-quarter loss after setting aside money at its Greek consumer-banking network and writing down investments. The net loss was EUR3.07 billion.

Germany’s second largest lender Commerzbank also declined 3.29% as the bank plans additional capital measures to improve its financial strength and said fourth-quarter profit rose 23% after it bought back hybrid securities to meet regulatory requirements for European banks.

Elsewhere, Vallourec fell 3.61% although the French producer of steel pipes for the oil and gas industry reported fourth-quarter profit grew 8.3% to 117 million euros, beating analysts’ estimates.

On the upside, Swiss Re jumped 5.26% as the world’s second-biggest reinsurer, raised its 2011 dividend to CHF3 from CHF2.75 in 2010. In addition, fourth-quarter net income was USD983 million after a loss of USD725 million in the year-earlier period.

In London, FTSE 100 added 0.31%, boosted by gains in financial stocks
Shares in the Royal Bank of Scotland surged 3.11% and Lloyds Banking climbed 2.09%, while Barclays and HSBC Holdings rose 1.17% and 0.15%.

Mining giants Rio Tinto and Bhp Billiton added to gains, with shares advancing 0.80% and 0.07%, while copper producers Xstrata and Kazakhmys added 0.04% and 0.87%.

In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.26%, S&P 500 futures signaled a 0.25% increase, while the Nasdaq 100 futures indicated a 0.35% gain.

Later in the day, the Ifo Institute was to publish a report on German business climate, while the U.S. was to produce government data on initial jobless claims.