By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets rose on
Wednesday, with banks and mining firms leading the charge north, as
investors got inspired from overnight gains in Asia, where Japanese
stocks soared to four-year highs.
The Stoxx Europe 600 index added 0.4% to 286.61, after putting
in the best daily performance since early January on Tuesday.
Shares of Royal KPN NV lost 3.4%, after Bank of America Merrill
Lynch cut the Dutch telecom firm to underperform from buy. The
shares slumped 16% on Tuesday, after the firm said it would raise 4
billion euros ($5.4 billion) in a rights issue to cut debt.
On an upbeat note, shares of Hargreaves Lansdown PLC jumped
5.6%. The investment manager reported a 30% rise in pretax profit
for the first half and raised dividends to 6.3 pence (9.87 cents)
from 5.1 pence.
More broadly in Europe, investors took inspiration from an
upbeat mood in Asia. Japanese stocks surged to a level not seen
since September 2008, as the yen sank amid hopes of aggressive
easing measures following news of Bank of Japan Gov. Masaaki
Shirakawa's early departure.
U.S. stock futures also pointed to a higher open on Wall
Street.
Later in the day, attention turns to a report on manufacturing
orders for Germany, with analysts expecting to see a pickup in the
euro zone's largest economy.
The DAX 30 index traded 0.3% higher at 7,687.24, with shares of Deutsche Bank AG (DB).up 0.5%.
In France, shares of ArcelorMittal SA gained 2.8%, after the
steelmaker said its loss widened in the fourth quarter but it sees
profitability picking up in 2013.
The CAC 40 index rose 0.2% to 3,702.07.
And in the U.K., shares of Royal Bank of Scotland Group PLC
(RBS) picked up 1.3%, as the bank said it's in late-stage
settlement discussions with authorities in relation to allegations
of interest-rate rigging.
Mining firms were also on the rise in London, as metals prices
traded mixed. Rio Tinto PLC (RIO) gained 1.6% and BHP Billiton PLC
(BHP) added 1.3%.
The FTSE 100 index rose 0.5% to 6,314.76.
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