European markets rise on automakers and financials (MarketWatch) (16-03-2010)

MADRID (MarketWatch) -- European stocks were gaining on Tuesday, with automakers including Daimler and banks including BNP Paribas driving the market higher as markets absorbed some mixed data from the region and also awaited a U.S. interest rate decision.

Investors in Europe and elsewhere are eyeing the decision on U.S. interest rates today. The decision -- not expected to bring about a change in rates -- will be made after Europe markets close, but investors will also be looking carefully for any change to the language within the statement. 

Economic data was in focus for Tuesday, with euro-zone inflation data for February showing consumer prices in the region rose 0.9% in February on an annual basis, slowing from the 1% rise in January. Meanwhile, the German ZEW investor confidence poll for March beat forecasts. The index fell to 44.5 in March from 45.1 in February, against expectations for a reading of 43, reflecting the fragility of the recovery as well as concern that Germany may bear the costs of bailing out Greece.

On Monday, Europe's finance ministers agreed on an emergency plan to rescue Greece from bankruptcy. The ministers said they were ready to provide financial assistance if the Greek government asked, but credit guarantees for the country were reportedly ruled out.

By region, the German DAX index rose 0.7% to 5,944.88 and the U.K.'s FTSE 100 index rose 0.3% to 5,610.28, and the French CAC-40 index rose 0.7% to 3,919.78.

Banks were gaining, with shares of Deutsche Bank and BNP Paribas, up 1.6% and 1.3%, respectively. Shares of Royal Bank of Scotland rose nearly 1% on a report it's planning a balance sheet restructuring that could involve more than 10 billion pounds ($15.1 billion) of the bank's debt being bought back at a premium to current prices. Swiss bank UBS was the preferred merger target of Barclays only weeks before the U.K. bank acquired the U.S. assets of Lehman Brothers, the Financial Times reported Tuesday, citing current and former directors. Shares of UBS were up 1.8% in Switzerland and those of Barclays rose 2% in London.

Source: MarketWatch