European shares near fresh year highs on US fiscal hopes

LONDON Tue Dec 18, 2012 1:39pm IST

LONDON Dec 18 (Reuters) - European shares rose early on Tuesday, tracking gains overnight on Wall Street fuelled by expectation that U.S. politicians were close to a deal to avoid steep tax hikes and spending cuts that threaten the global economy.

By 0802 GMT, the FTSEurofirst 300 was up 3.56 points, or 0.3 percent at 1,136.08, approaching fresh highs for 2012 along with Germany's DAX up 0.4 percent at 7,632.51 and France's CAC up 0.3 percent at 3,648.09, respectively.

In the United States, the S&P 500 closed up 1.2 percent after U.S. President Barack Obama made a counter-offer to Republicans that included a major change in position on tax hikes for the wealthy, according to a source familiar with the talks.

"Overnight news on the fiscal cliff has been taken positively by the markets here in Europe after underperforming the U.S. recently," Securequity sales trader Jawaid Afsar said.

He said that could drive further gains heading into the seasonal holiday period, which could take the FTSE 100 to the long awaited 6,000 area by the end of the year with the key themes to play the miners and financials.

  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage