By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — European stock markets largely rose on Friday, led by banks and miners, as investors awaited a euro-zone finance ministers meeting to discuss an increase in the region’s emergency firewall.
The Stoxx Europe 600 index XX:SXXP +0.89% added 0.9% to 263.18, partly reversing a 1.3% loss from Thursday.
Posting one of the biggest gains in the index, Vestas Wind Systems AS DK:VWS +4.50% surged 4.7% after UBS lifted the stock to neutral from sell.
The French CAC 40 index FR:PX1 +1.17% performed the best among major country-specific indexes, trading 1.2% higher at 3,420.07, buoyed by banks and auto makers.
Peugeot SA FR:UG +2.81% took on 2.8% and Renault SA FR:RNO +2.95% added 3.2%, partly reversing Thursday’s losses, after S&P said light-vehicle sales for the European car sector could fall by at least 5% in 2012.
Among banks, Credit Agricole SA FR:ACA +2.64% rose 2.6% and Societe Generale SA FR:GLE +1.30% advanced 1.5%.
The broader European stock market also headed north as investors looked toward the outcome of a euro-zone finance ministers meeting in Copenhagen Friday and Saturday. The ministers are expected to discuss an increase in the region’s emergency firewall to avoid sovereign-debt issues from spreading to other member states.
Details of a draft plan released earlier this week suggested running the existing, temporary rescue fund in combination with the new permanent European Stability Mechanism, resulting in a firewall of 940 billion euros ($1.3 trillion).
“If a temporary increase in the firewall is endorsed, we expect to see a muted reaction in the European sovereign debt markets. Everything below this number could trigger a slight risk-off move,” said analysts at Danske Bank in a note.
Greece re-entered the European sovereign-debt spotlight after Prime Minister Lucas Papademos said a third bailout for the country couldn’t be ruled out in an interview with Italian newspaper Il Sole 24, according to Reuters. The Athens General Index GR:GD -0.80% gave up 0.5% to 731.206.
Meanwhile, euro-zone inflation slowed to a 2.6% annual pace in March, down from 2.7% in February.
Banks support markets
Banks were higher in Frankfurt and Commerzbank AG DE:CBK +1.92% gained 2.8% and Deutsche Bank AG DE:DBK +0.89% climbed 0.9% higher. The DAX 30 index DX:DAX +0.91% was 1% higher at 6,943.71, further supported by car makers Daimler AG DE:DAI +2.55% , up 3%, and BMW AG DE:BMW +3.67% , 3.1% higher.
HeidelbergCement AS DE:HEI +5.25% took on 5.8% after HSBC upgraded the stock to overweight from neutral.
In the U.K., miners lifted the FTSE 100 index UK:UKX +0.59% 0.6% to 5,778.36 as commodity prices moved higher. Kazakhmys PLC UK:KAZ +3.70% added 3.9%, Vedanta Resources PLC UK:VED +3.55% took on 3.9%, while heavyweight Rio Tinto PLC UK:RIO +3.07% RIO +3.09% was 3.2% higher.
Banks were also higher and HSBC Holdings PLC UK:HSBA +0.99% HBC -1.39% gained 0.8% and Barclays PLC UK:BARC +1.30% BCS -3.45% took on 1.3%.
AstraZeneca PLC UK:AZN +0.49% AZN -0.38% rose 0.7% after the U.S. District Court in New Jersey ruled that the formulation patent for the drug maker’s blockbuster anti-psychotic drug Seroquel XR was valid.
Among other notable gainers in Europe, shares of Portugal toll-road operator Brisa-Autoestradas de Portugal SA PT:BRI -0.64% surged 14.2% a day after shareholders holding 50% of the company offered to buy the rest of Brisa in a deal that values the company at €1.6 billion.
