European stocks rise as euro zone hopes support; Dax up 0.50%

Investing.com - European stocks were higher on Wednesday, supported by positive Spanish service sector data, while signs of progress in handling the euro zone's debt crisis also boosted investor confidence.

During European morning trade, the EURO STOXX 50 advanced 0.62%, France’s CAC 40 rose 0.53%, while Germany’s DAX 30 climbed 0.50%.

Markit research group said that Spain's services purchasing managers' index rose to a seasonally adjusted 42.4 in November, from 41.2 the previous month. Analysts had expected the index to fall to 41.0 last month.

Meanwhile, sentiment remained supported after Greece launched a scheme to buy back debt from private investors on Monday, as part of an agreement to reduce its debt load and unlock a new bailout package worth EUR44 billion.

In addition, Spanish and Italian bond yields turned lower after Spain formally requested aid to recapitalize its banks.

Financial stocks were broadly higher, as shares in French lenders BNP Paribas and Societe Generale jumped 1.76% and 1.40%, while Germany's Deutsche Bank and Commerzbank rallied 1.68% and 2.09% respectively.

Peripheral lenders also posted sharp gains, as Italian banks Unicredit and Intesa Sanpaolo surged 2.35% and 1.81%, while Spain's BBVA and Banco Santander climbed 1.04% and 0.81%.

Elsewhere, Nokia Oyj soared 5.93%, after the Finnish mobile-phone maker unveiled a version of its flagship smartphone for China’s largest wireless carrier, China Mobile Ltd.

In London, commodity-heavy FTSE 100 climbed 0.54%, supported by sharp gains in oil and mining stocks.

Oil and gas major Anglo American saw shares rally 3.70% and rival BP added 0.15%, while mining group Vedanta Resources surged 4.13%.

Mining giants Rio Tinto and BHP Billiton added to gains, with shares advancing 2.94% and 2.38%, while copper producers Xstrata and Kazakhmys jumped 1.29% and 3.43% respectively.

Meanwhile, U.K. lenders tracked their European counterparts higher, as the Royal Bank of Scotland climbed 0.71% and Lloyds Banking advanced 0.70%, while Barclays rose 0.85% and HSBC Holdings rallied 0.98%.

HSBS announced earlier that it agreed to sell its stake in China’s Ping An Insurance to Thai billionaire Dhanin Chearavanont for USD9.4 billion, in a move to revive profit and boost capital.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.41% rise, S&P 500 futures signaled a 0.42% gain, while the Nasdaq 100 futures indicated a 0.42% increase.

Also Wednesday, Markit said that France's services PMI fell unexpectedly to a seasonally adjusted 45.8 last month, from 46.1 in October.

Later in the day, the euro zone was to release official data on retail sales, while Spain was to hold an auction of 10-year government bonds.

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The U.S. was to release a report on ADP nonfarm payrolls, as well as official data on factory orders and crude oil stockpiles. In addition, the Institute of Supply Management was to produce a report on service sector activity.