1:00 PM Frankfurt The European indexes gained on optimism of a resolution to the sovereign debt crisis. Sarkozy and Merkel remained confident that Greece will remain in the euro-zone The Italian Parliament approved a watered down 54 billion-austerity plan. Spain sold 3.9 billion in bonds. UBS reported $2 billion in unauthorized trading losses.
European indexes traded higher after French Prime Minister Nicolas Sarkozy and German Chancellor Angela Merkel said in a joint statement that the future of Greece is in the euro-zone.
The Greek prime minister confirmed his government's absolute determination to take all necessary measures to implement all commitments, the statement continued.
The Greek leader restated his commitment to putting in place the agreed cuts, privatization and structural reforms demanded by international lenders.
The Italian Parliament gave its final approval to a 54 billion-austerity plan after watering down several of the proposals and adding some new ones like a sales tax hike and revised wealth tax in an effort to balance the country's budget by 2013.
The package was adopted after lawmakers voted approved the proposal with 314-to-300 votes.
The Spanish Treasury issued a total of 3.95 billon bonds in an auction today.
The Treasury sold 1.5 billion of bonds maturing in October 2020 at an average yield of 5.156% with a bid-to-cover ratio of 1.99, 1.4 billion of April 2020 bonds at 5.006% with a bid-to-cover ratio of 2.01, and 1 billion of July 2019 bonds at 4.969% with a bid to cover of 2.17.
In Paris, CAC-40 Index gained 72.44 to 2.46% to 3,021.58 and in Frankfurt DAX Index edged higher 132.15 or 2.47% to 5,472.34.
The UK government has decided to take legal action against the European Central Bank that could prevent clearing houses in the UK from dealing with euro-denominated financial products, according to reports.
The ECB's plans would require clearing houses that handle more than 5% of the market in euro-denominated financial products to be based in the euro-zone.
Euro Area Employment Rises
Employment in the euro area increased a seasonally adjusted 0.3% in the second quarter compared to the 0.1% growth in the first quarter, according to Eurostat.
In EU27, employment rose 0.2% in the second quarter as against the 0.1% increase in the first quarter.
Total Inks Deal with Indonesia
Total SA said it signed agreements with Talisman Energy Inc. to farm-in into three deep-offshore exploration blocks in the Makassar Strait in Indonesia.
Total acquired from Talisman a 50% interest in the Sageri Production Sharing Contract, or PSC, a 35% interest in the South Sageri PSC and a 20% interest in the Sadang PSC.
Gainers & Losers
Aixtron SE plunged 17.4% to 11.60 after the German LED lighting equipment firm estimated 2011 revenue in a range of 600 million to 650 million, down from the prior guidance range of 800 million to 900 million.
H & M Hennes & Mauritz AB soared 5.6% to SEK 195.20 after the Swedish apparel retailer said comparable store sales dropped 3% and total sales including VAT grew 5% in local currencies to SEK 31.51 billion from SEK 31.48 billion last year.