European stocks rise ahead of Italian bond auction; Dax up 0.30%

Investing.com - European stocks were higher on Wednesday, after positive German consumer climate data and as investors awaited the results of an Italian government bond auction later in the day, although the country's political deadlock continued to weigh.

During European morning trade, the EURO STOXX 50 climbed 0.45%, France’s CAC 40 advanced 0.51%, while Germany’s DAX 30 rose 0.30%.

In a report, research group Gfk said that its index of German consumer climate rose to 5.9 in February, from a reading of 5.8 the previous month, in line with expectations.

On Tuesday, the Italian election ended with no party or coalition in control of the Senate, raising the threat of a prolonged period of political instability and potentially reigniting the crisis in the euro zone.

Italian 10-bond yields rose to the highest level since December on Tuesday, climbing to 4.91% from 4.37% on Monday, while the yield on Spanish 10-year bonds rose to 5.5% from 5.1% on Monday.

Elsewhere, Federal Reserve Chairman Ben Bernanke defended the bank's easing program on Tuesday, saying that the benefits outweighed the possible costs. The comments came in testimony to the Senate on monetary policy.

Financial stocks were broadly higher, as French lenders Societe Generale and BNP Paribas climbed 0.74% and 0.89%, while Germany's Deutsche Bank and Commerzbank advanced 0.44% and 1.07% respectively.

Peripheral lenders added to gains, with Spanish banks Banco Santander and BBVA jumping 0.83% and 1.07%, while Italy's Unicredit and Intesa Sanpaolo rallied 0.99% and 1.38%.

Elsewhere, EADS surged 4.37% after it reported a 68% increase in full year earnings, beating analysts' estimates. The company also predicted profit gains in 2013, thanks to its Airbus SAS aircraft division and rising demand for commercial helicopters.

In London, FTSE 100 climbed 0.44%, as U.K. lenders tracked their European counterparts higher.

Shares in Lloyds Banking advanced 0.77% and the Royal Bank of Scotland rallied 0.74%, while HSBC Holdings and Barclays jumped 1.12% and 1.55% respectively.

Mining stocks were also on the upside, with Rio Tinto and BHP Billiton adding 0.21% and 0.35%, while copper producers Xstrata and Kazakhmys rose 0.07% and 0.54%

Meanwhile, Vodafone surged 2.07%, amid reports it put on hold plans to approach Kabel Deutschland Holding about a takeover bid after leaks of a potential offer complicated internal discussions.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.08% rise, S&P 500 futures signaled a 0.06% gain, while the Nasdaq 100 futures indicated a 0.01% dip.

Later in the day, Italy's Treasury was to hold an auction of 10 and five-year government bonds.

The U.S. was to publish official data on durable goods orders and pending home sales, while Ben Bernanke was to testify on monetary policy for a second day. In addition, European Central Bank President Mario Draghi was to speak at an event in Germany.