European stocks higher on summit accord
Published Dec 09, 2011 06:51AM ET
During the mid London session, the DAX 30 advanced 0.42%, the FTSE climbed 0.09% and the STOXX 50 added 0.77%.
German Chancellor Angela Merkel announced an accord was reached at the European Union summit. She stated, "We will create a new fiscal union for the euro that is a stability union by creating a "debt brake" for all euro countries and all countries that want to join up," per Bloomberg.
In addition, European leaders added 200 billion euros to their crisis fund and ramped up anti - deficit rules in an attempt to urge the European Central Bank to become more aggressive with its rescue programs.
The accord includes a "fiscal compact" that will advance the start of a 500 billion euro crisis fund and lowered bondholder loss sharing provisions.
However, a report issued by the Bank of Korea warned that Chinese economic growth may slow down in 2012 placing a damper on the accord's optimism.
Telecommunication company, Alcatel soared 4.4% after Sanford Bernstein raised its rating to "outperform" from "market perform".
Financial shares controlled the advance with Credit Agricole and Societe Generale climbing 4.15 and 4.04%, respectively.
Germany's Deutsche Bank led the DAX higher by surging 3.79%
Automakers were also on the leader board with Daimler AG and BMW AG climbing 2.65% and 1.42% on the session.
U.S. stock futures followed higher with the U.S. 30 up 0.77%, U.S. SPX 500 climbing 0.81% and the NQ100 ahead by 0.72%.
Later in the session, U.S. government reports are expected to indicate a widening of the trade deficit and improved consumer sentiment.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.