By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets climbed on
Wednesday after upbeat German consumer-confidence data and
better-than-expected economic reports from the U.S.
The Stoxx Europe 600 index rose 0.6% to 324.30, after closing at
the lowest level in almost two weeks on Tuesday.
"Equity markets are without any doubt in a Santa rally mood, and
there is still more potential for an upward move by the end of this
year. However, we may see some profit-taking ahead of next week's
U.S. employment data, which could flare up the tapering talk," said
Naeem Aslam, chief market analyst at AvaTrade. Tapering refers to
the expected scaling back in the Federal Reserve's $85 billion a
month bond-buying program.
Data from Germany showed consumer confidence rose to the highest
level in more than six years, buoyed by a robust jobs market and
solid income expectations. The forward-looking GfK
consumer-confidence indicator for December came in at 7.4, up from
7.1 in November and beating analyst expectations.
Also in Germany, the biggest political parties early Wednesday
agreed to forge a coalition government led by Angela Merkel.
Merkel's conservative Christian Democratic Union, its Bavarian
Christian Social Union sister party and the Social Democrats agreed
after 17 hours of negotiations to introduce a national minimum wage
and toughen labor-market rules, as well as boost spending on
pensions, education and infrastructure.
Data in the U.K. confirmed that the economy grew 0.8% in the
third quarter, driven by the fastest rise in household spending in
more than three years.
In the U.S., stocks opened higher after data showed jobless
claims last week unexpectedly fell, while durable-goods orders fell
less than forecast.
Europe movers
The German DAX 30 index rose 0.7% to 9,350.68, putting it on
track for an all-time closing high.
France's CAC 40 index gained 0.4% to 4,294.92,and the U.K.'s
FTSE 100 index added 0.3% to 6,655.88.
Among notable movers in the indexes, Colruyt SA jumped 5.9% in
Brussels after the food retailer reported a 9% rise in first-half
earnings per share.
Shares of United Utilities Group PLC rose 0.5% in London after
the water supplier raised dividends 5%, as higher prices boosted
revenue and profit.
Compass Group PLC gained 1.7% after the catering firm said it
will return 500 million pounds ($810 million) to shareholders via a
buyback program, as it reported a rise in full-year sales.
HeidelbergCement AG climbed 2% in Frankfurt after Berenberg
lifted the firm to buy from hold.
Shares of Veolia Environnement SA dropped 2.4% after Electricite
de France SA late Tuesday sold its stake in utility and waste
management firm. EDF shares were 0.4% higher.
Shares of Accor SA lost 6.7% after the hotel operator laid out a
new growth strategy.
De La Rue PLC gave up 6.8% after Citigroup cut the currency
printer to neutral from buy. The company rallied 9.4% on Tuesday
after reporting a 19% rise in first-half pretax profit.
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