By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets rose for a second
straight day on Wednesday, fueled by better-than-expected German
consumer-confidence data and a raft of upbeat U.S. data the day
before.
The Stoxx Europe 600 index rallied 1.7% to 284.30, building on a
1.5% gain from Tuesday.
Shares of Direct Line Insurance Group PLC climbed 4.8% after the
U.K. firm announced plans to cut costs by 130 million pounds ($200
million) and cut about 2,000 jobs.
Spanish banks gained after Citigroup lifted the country's
banking sector to neutral. Bankinter SA , which was upgraded to buy
from sell, added 3.2%, and Banco Santander SA (SAN), which was
lifted to neutral from sell, picked up 2.1%.
The IBEX 35 index jumped 2.4% to 7,789.10.
For the broader European stock markets, investors took
inspiration from the U.S., where indexes rallied Tuesday after data
showed increases in durable-goods orders, new-home sales and
consumer confidence. The gains came despite the looming prospect
that the Federal Reserve may slow its bond purchases if the U.S.
economy improves. Also read: Bill Gross says Fed's tapering plan
may be too hasty.
U.S. stock futures pointed to a higher open on Wall Street.
Most Asia markets also closed in positive territory. But China's
Shanghai Composite Index dropped 0.4% as interbank money market
rates remained unusually high, although down a bit from
Tuesday.
In Germany, the DAX 30 index climbed 1.6% to 7,934.61. Data
showed German consumers are optimistic about the summer, with the
GfK consumer-climate study forecasting a value of 6.8 points in
July, up from 6.5 points in June.
Among other country-specific indexes, France's CAC 40 index put
on 1.9% to 3,717.10.
Shares of Unibail-Rodamco SE added 2.6% after UBS lifted the
property-investment firm to buy from neutral.
The U.K.'s FTSE 100 index rose 1% to 6,165.38.
Outside the major indexes, shares of Afren PLC jumped 7.6% and
Lekoil Ltd. surged 16% after the two firms said their Ogo well
offshore Nigeria discovered a significant light oil field.
Shares of Etablissementen Franz Colruyt NV jumped 7.8% in
Brussels after the discount food retailer late Tuesday reported a
6.2% rise in full-year operating profit.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires