Markets

European stocks advance as Greece vote looms; DAX up 0.2%

Forexpros - European stock markets were broadly higher on Tuesday, as shares in the financial sector advanced amid optimism that progress was being made to solve Greece's sovereign debt crisis ahead of a crucial vote on austerity measures later in the week.

During European morning trade, the EURO STOXX 50 gained 0.25%, France's CAC 40 jumped 0.9%, while Germany's DAX 30 edged 0.2% higher.

Greek Prime Minister George Papandreou urged lawmakers to obey their "patriotic conscience" and back tougher austerity measures, as they began to debate a five-year budget plan on Monday.

Greece's Parliament is due to vote Wednesday on the EUR28.4 billion, five-year austerity package, followed by a vote Thursday on implementing the legislation.

Meanwhile, French President Nicolas Sarkozy said that he supported a plan proposed by French lenders to rollover Greek debt.

Shares in BNP Paribas jumped 1.1%, Societe Generale shares gained 2.1%, while Credit Agricole saw shares rally 3.1%.

German banks were also higher, with Deutsche Bank up 1.8%, while Commerzbank shares surged 2.9%.

Shares in French retailer Carrefour jumped 3% after it said it received a proposal to form a 50-50 joint venture with Cia Brasileira de Distribuicao, Brazil's largest retailer.

Adidas, the world's second largest sporting-goods maker saw shares climb 2.7% after rival Nike reported better-than-expected earnings after Monday's closing bell on Wall Street.

In London, the FTSE 100 advanced 0.5% as shares in Standard Chartered gained after reporting better-than-expected earnings earlier.

The Asia-focused bank saw shares climb 1.7% after it said income and profits were up over 10% in the first five months of the year, as a strong performance in Hong Kong, Singapore and China helped offset a weaker showing from India.

The outlook for U.S. equity markets was modestly downbeat. The Dow Jones Industrial Average futures pointed to a loss of 0.1%, S&P 500 futures shed 0.15%, while the Nasdaq 100 futures edged 0.25% lower.

Later in the day, the U.S. was to publish industry data on house price inflation as well as a report on consumer confidence.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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