European stocks push higher on strong German data; Dax up 0.40%

Investing.com - European stocks pushed higher on Wednesday, after the release of positive business climate data from Germany, while investors hoped for progress in ongoing U.S. budget negociations.

During European afternoon trade, the EURO STOXX 50 climbed 0.52%, France’s CAC 40 advanced 0.40%, while Germany’s DAX 30 rose 0.23%.

Investor confidence was boosted by signs of progress in negotiations aimed at avoiding the fiscal cliff, automatic tax hikes and spending cuts due to take effect on January 1, which investors fear could threaten U.S. and global growth.

Sentiment also improved after data showed that German business confidence continued to improve in December, in spite of the deteriorating outlook for the euro zone economy.

The Ifo economic institute's German business climate index came in at 102.4 points this month, up from 101.4 in November, beating analysts' expectations for a reading of 102.0.

Financial stocks remained broadly higher, as shares in French lenders Societe Generale and BNP Paribas advanced 0.37% and 1.44%, while Germany's Deutsche Bank and Commerzbank rallied 1.44% and 0.33% respectively.

Peripheral lenders also posted sharp gains, with Italian banks Intesa Sanpaolo and Unicredit jumped 0.92% and 2.55% respectively, while Spain's BBVA and Banco Santander jumped 1.45% and 1.51%.

Elsewhere, SAP AG climbed 0.71% after rival Oracle posted fiscal better-than-expected second-quarter sales and profit.

In London, FTSE 100 climbed 0.42%, after the minutes of the Bank of England’s December policy meeting showed that the monetary policy committee was split eight-to-one, with just one policymaker in favor of further easing this month.

U.K. lenders continued to track their European counterparts higher, as shares in HSBC Holdings jumped 1.39% and Barclays rallied 2.14%, while the Royal Bank of Scotland and Lloyds Banking surged 2.28% and 3.37%.

Mining stocks also remained broadly higher. Rio Tinto and BHP Billiton climbed 0.48% and 1.21%, while copper producers Xstrata and Kazakhmys jumped 1% and 0.49% respectively.

Meanwhile, Bunzl saw shares plummet 4.17%, even as the distribution and outsourcing group said it expects full-year revenue growth to be around 6%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.15% gain, S&P 500 futures signaled a 0.09% rise, while the Nasdaq 100 futures indicated a 0.20% increase.

Also Wednesday, Standard & Poor's ratings agency upgraded Greece's credit grade by six notches to B-, the highest grade it has given Greece since June 2011, reflecting its view that the other euro zone countries are determined to keep Greece inside the currency union.

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It also gave Greece a stable outlook, meaning it is less likely to change its rating again soon.

Later in the day, the U.S. was to publish government data on building permits, housing starts and crude oil stockpiles.