The Stoxx Europe 600 index XX:SXXP +0.86% was 0.8% higher at 266.52.
Posting the biggest gain in the index, C&W Worldwide UK:CW +13.84% surged 16% after Tata Communications Ltd.IN:500483 +1.22% confirmed earlier speculation that it was mulling an offer for the U.K. telecom firm. Vodafone Group PLC UK:VOD +1.12% last month said it’s mulling a bid for C&W Worldwide. A spokesperson from C&W Worldwide declined to comment. Vodafone shares rose 1%.
The U.K. FTSE 100 index UK:UKX +0.86% was 0.8% higher at 5,915.26. Man Group PLC UK:EMG +10.39% gained 7.3% after reporting an increase in funds under management for the first two months of 2012 to $59.5 billion and said investor sentiment has improved since the end of last year.
Banks were also higher. Barclays PLC UK:BARC +1.96% BCS +2.73% advanced 2.2%, HSBC Holdings PLC UK:HSBA +1.73% HBC +1.73% rose 1.8% and Royal Bank of Scotland Group PLC UK:RBS -0.32% RBS +0.11% gained 1.4%.
Markets held gains after initial jobless claims in the U.S. fell by 2,000 last week to a seasonally adjusted 351,000, broadly in line with analysts expectations of 350,000. In a separate report, the Commerce Department said personal income rose 0.3% in January after a 0.5% jump in December and consumer spending climbed 0.2% in January after no movement the prior month.
Markets were further waiting for the ISM manufacturing index to be released later in the day.
“Recent data showing improvement in the States have been positive for the markets in the economic rebound,” said Richard is Perry, chief strategist at Central Markets.“Markets dropped yesterday when Ben Bernanke didn’t mention further easing, but maybe it just means the U.S. is in better shape.”
U.S. stocks opened higher on Wall Street.
In Europe, the Markit purchasing managers index for the euro zone showed activity in the region shrank at a slower pace in February, coming in unchanged from a preliminary estimate.
Separately, consumer prices grew at 2.7% annual rate in February, edged up from 2.6% in January, the European Union statistics agency Eurostat reported. January unemployment rose to 10.7% from an upwardly revised 10.6% in December.
Italian banks rally after LTRO
Italian banks were among the best performers in Europe after reportedly tapping the European Central Bank for 26% of the money borrowed Wednesday by the region’s banks in the central bank’s second three-year long-term refinancing operation.
UniCredit SpA IT:UCG +4.76% jumped 5.4%, Banco Popolare SC IT:BP +9.42% surged 9.1%, Banca Monte dei Paschi di Siena SpA IT:BMPS +4.59% gained 5.2% and Unione di Banche Italiane SCpA IT:UBI +4.95% was 4.1% higher. The FTSE MIB index XX:FTSEMIB +2.32% outperformed the rest of European country-specific indexes and traded 2% higher at 16,677.48.
In the secondary market, yields on 10-year benchmark Italian government bondsIT:10YR_ITA -4.26% declined 14 basis points to 4.98%, falling below the 5% level for the first time since August.
In Greece, National Bank of Greece SA GR:ETE +2.13% added 2.1%, supporting the Athens General Index GR:GD +0.57% to trade 0.4% higher at 746.18. The index was earlier in the session in red territory, but jumped after the International Swaps and Derivatives Association said no “credit event” has yet occurred in Greece’s effort to restructure its debt. In case of a credit event, credit default swaps held as insurance against nonpayment would have to be paid out. Read about Greek CDS.
In France, BNP Paribas SA FR:BNP +2.24% advanced 2.4% and Societe Generale SAFR:GLE +3.51% rose 2.7%, helping lift the CAC 40 index FR:PX1 +1.05% 1% to 3,487.30.
The index was further supported by Veolia Environnement SA FR:VIE +14.21% VE +15.09% up 10.8%. The waste and water firm said it swung to a loss in 2011, but reaffirmed its debt-reduction and said 2012 had come off to a good start.
Adding pressure to the index, Vivendi SA FR:VIV -8.41% sank 8.4% after reporting record adjusted net profit for 2011, but said it expects higher taxes and competition to weaken profits in 2012 and 2013.
Peugeot SA FR:UG -5.02% shed 6.7%, as Moody’s Investor Services downgraded the car maker to Ba1 from Baa3 and said outlook was negative, citing disappointing 2011 results and negative cash flow.
General Motors Corp. GM +1.88% said late Wednesday it would buy a 7% stake in Peugeot as part of a broad alliance aimed partly at saving costs. Data also showed new car registrations in France fell 20% in February year-on-year.
German car manufacturers, however, posted gains after Volkswagen AG’sDE:VOW +1.97% premium brand Audi reported a 69% increase in 2011 profit. Shares of Volkswagen added 1.7% and BMW AG DE:BMW +2.50% took on 1.9%.
The DAX 30 index DX:DAX +0.92% rose 0.9% to 6,915.64, also supported by a 2.5% gain from Deutsche Bank AG DE:DBK +0.74% .
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