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Market Update

European Markets Up on Greek Hopes, China Aid

European markets opened higher on optimism after Greek leaders agreed to provide written commitment for implementing austerity reforms even as China vowed to help resolve the region’s debt crisis.

The FTSE was up 0.1% at 8:59 a.m. The CAC 40 Paris was up 0.4% while the German DAX climbed 1%.

EU leaders cancelled a Brussels meeting that was scheduled today and decided to hold a teleconference instead to decide on the bailout package. According to government sources, Antonis Samaras, leader of the Greek political party New Democracy, was expected to deliver a letter of commitment to the international lenders on Wednesday.

Meanwhile, governor of China’s central bank said he believed Europe can resolve the crisis and that Beijing would continue investing in euro-zone government debt, which further propped up investor confidence.

Stocks on the move

Several companies reported better-than-expected earnings, which aided the rally in European stocks.

BNP Paribas gained 4.2% after reporting earnings.  Other banks were also trading higher. Credit Agricole was up 1.5% . Societe Generale was up 2.7%

Clariant AG advanced 4.5% after the company reported better-than-expected earnings.

Auto makers also advanced Daimler AG added 1.6%

Adidas AG climbed 3.1%, while Volkswagen AG drove up 0.11%.