Europe close: Stocks rise as optimism over US fiscal cliff grows



LONDON (ShareCast) - - Equities increase as US considers 'Plan B' to prevent fiscal cliff
- IMF says Ireland (OTC BB: IRLD - news) should wait on more austerity measures
- Central banks in Sweden, Turkey and Hungary cut interest rates
- BHP Billton gains on back of mining growth

FTSE-100: 0.40%
Dax (Xetra: ^GDAXI - news) -30: 0.64%
Cac-40: -0.29%
FTSE Mibtel 30: 0.94%
Ibex 35: 1.60%
Stoxx 600: 0.46%

European equities continued to climb modestly at close Tuesday as US House Speaker John Boehner offered a fall-back plan to avert the looming fiscal cliff.

Boehner pitched 'Plan B' measures to cancel tax increases on people earning $1m or less while allowing higher earners to bear the brunt.

Initially President Barack Obama had pushed for tax rates to increase at a lower threshold, for earnings over $250,000 per year. However his administration made a new offer to Republicans last night raising the threshold to $400,000.

In Europe, the International Monetary Fund (IMF) has recommended Ireland refrain from implementing more austerity measures if growth disappoints next year. The recommendation was made after the eighth review of the Irish bailout programme.

Sweden, Turkey and Hungary were also under the microscope today after central banks cut key interest rates in an effort to counter the impact of the Eurozone crisis on their economies.

The countries, which have close financial and trade ties with the currency area, have been affected in part by reduced demand from export from the 17 nations that use the euro.

BHP Billton gains

BHP Billton climbed 1.4% as mining companies experienced progress after China set its economic-growth target at 7.5% for next year.

Imagination Technologies Group increased 6.9% to 410p following news the UK maker of chip technology for tablets and smart phones was likely to succeed in buying MIPS Technologies Inc (NasdaqGS: MIPS - news) .'s operating businesses, according to reports.

Banco Santander gained 1.6% as shares of lenders rose. It follows yesterday's news the company would absorb Spanish banks, Banesto and Banif.

PSA Peugeot Citroen (Other OTC: PEUGY - news) has appointed Louis Gallois as France's board representative, following the government's strategy to help the company's bank unit.

Brent crude rises

The euro/dollar was edging higher by 0.44% to the 1.3222 dollar mark.

Front month Brent crude futures were rising by 0.984 dollars, to the 108.710 dollar per barrel mark on the ICE.


Featured Content