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Market Update

European Shares Gain After EU Budget Deal

European markets were trading modestly higher Friday as EU leaders reached an agreement over a long-term budget that would initiate spending cuts in the euro-zone over the next seven years.

The FTSE 100 rose 0.6% at 8:50 a.m. London time. The CAC 40 Paris gained 0.7% while the DAX Frankfurt was up 0.4%.

Investor sentiment was boosted after euro-zone leaders agreed over the first-ever cuts in the region's budget. Total EU spending is fixed at 960 billion euros over the next seven years, which amounts to a cut of 33 billion euros.

Upbeat trade data released in China earlier in the day further added to the optimism.

Stocks on the move

Financials were among the top gainers today. French lender Societe Generale rose 1.3% and so did BNP Paribas.

In Germany, Commerzbank enhanced 0.6% while Deutsche Bank added 0.3%.

In London, Barclays Bank climbed 0.8%  while Lloyds Banking Group inched up 0.2%.

Among resources stocks, miners BHP Billiton and Rio Tinto enhanced in the range of 0.5% to 0.8%.

On the earnings front, global fashion giant Hugo Boss AG rose 1.1% after its fourth-quarter earnings topped estimates.

In other news, London-based Carnival Plc. said it sold 75,000 shares at an average price of 2,589 pence per share. Shares of Carnival edged up 0.3%.

Telecom giant Vodafone Plc. gained 1.8% after the company said it purchased 5 million of its ordinary shares on the London Stock Exchange on Feb. 7th. 

German car maker BMW AG drove up over 1% after the firm's global sales rose to its highest ever for the month in January.