VIENNA (dpa-AFX) - European stocks are posting modest gains on Monday, erasing early losses, as optimism prevailed ahead of a European finance ministers' teleconference later in the day.
The ministers are seeking to finalize a €150bn contribution to the International Monetary Fund and are expected to take a call on the new fiscal compact for the euro area, proposed at the EU summit on December 9. The Dow futures are rising 48 points, helping boost investor sentiment.
The Euro Stoxx 50 index of euro zone blue chippers is up 0.7 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is moving up 0.4 percent.
Around Europe, the German DAX is gaining 0.7 percent, France's CAC 40 is rising half a percent, the U.K.'s FTSE 100 is adding 0.1 percent and Switzerland's SMI is up half a percent.
In stock-specific action, German car maker Volkswagen is adding 2.1 percent on a report that the euro-region debt crisis isn't having a significant impact on sales of its premium car brand Audi. Air Berlin is climbing 10 percent after the airline signed a strategic commercial co-operation agreement with Etihad.
Shares of software maker SAP are 1.7 percent higher after the company, through a wholly-owned subsidiary, commenced its all cash tender offer to acquire all outstanding shares of common stock of SuccessFactors, Inc. for $40.00 per share.
Technicolor SA is tumbling 4 percent after the French color film process company cut its full-year core profit forecast, citing ongoing deterioration in the European market. Also, the company said it has accelerated its cost reduction actions, which would result in reduction of around 600 employees globally in 2012.
Sanofi is posting a modest 0.3 percent gain after the vaccine major said it has completed the divestiture of its dermatology business, Dermik, to Valeant Pharmaceuticals International Inc. for a total cash consideration of $422.5 million.
Rolls-Royce Holdings Plc is rising half a percent in London after the British engine maker said it has won a 250 million euros contract with AREVA to supply safety instrumentation and control technologies and systems for the French nuclear reactor modernization program.
Elsewhere, Asian stocks closed mostly lower on Monday, with key benchmark indexes in Australia, Hong Kong, Japan and South Korea falling 1-3 percent, as the sudden death of the mercurial leader of nuclear-armed North Korea, Kim Jong Il, added to ongoing uncertainties in the Eurozone.
Fitch Ratings said Friday that it would consider downgrading its ratings on government bonds issued by six European nations, including Italy and Spain, heightening concerns about Europe's sovereign debt crisis.
Meanwhile, the large scale purchases of sovereign bonds are beyond the scope of the European Central Bank's policy, Governing Council Member Christian Noyer said in Paris. Noyer, who is also the Bank of France governor said unconventional measures were required in a challenging environment.
In economic releases, France's leading economic indicator increased in October, after declining for three consecutive months, data released by the Conference Board showed. The leading economic index (LEI) moved up to 113.4 in October from 112.8 in September, with the growing coming after three consecutive decreases.
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