EUROPE MARKETS: Europe Stocks Track Asia Higher, Nokia Rallies

By Sara Sjolin, MarketWatch

LONDON (MarketWatch)--European stock markets staged broad-based gains on Wednesday, keying off overnight gains in Asia after China's new leaders implied they would continue their supportive policy stance.

The Stoxx Europe 600 index rose 0.2% to 276.89, on track for a third straight day of gains.

U.S. stock futures also pointed to a higher open on Wall Street.

Shares of Nokia Corp. (NOK) put in the best performance in the index, up 7%, after the Finnish mobile-phone maker said it is launching a new Windows-based Lumia handset in partnership with China's biggest operator, China Mobile Ltd.

Shares of Tesco PLC (TESO) added 2.7%. The British supermarkets retailer said it would review its U.S. Fresh & Easy business and said it is clear it won't "deliver shareholder returns on an appropriate time frame in its current form."

Shares of Assa Abloy AB dropped 0.8%, after J.P. Morgan Cazenove cut the lock manufacturer to neutral from overweight.

Eur- zone data was also in focus, after the region's composite purchasing manager's index rebounded in November from a 40-month low the prior month, but continued to signal a deep contraction in private-sector output.

Elsewhere, markets took inspiration from Asia, where most bourses were in positive territory, after comments from a meeting of China's new leadership on Tuesday signaled that an accommodative economy policy would remain in place in coming quarters. Additionally, it stressed it would actively promote urbanization, expected to spur infrastructure investments and support Chine growth.

"It also said it would make economic policies more targeted and effective and fine-tune these policies in an appropriate and timely way, indicating economic reform measures in coming years," analysts at Danske Bank said in a note.

Resource firms, which generally rise on any growth indications from China, were among the biggest gainers in Europe.

Shares of Rio Tinto PLC (RIO) climbed 2.6% in London, while those of BHP Billiton PLC (BHP) added 2.5%. Metals prices were higher across the board.

Banks were also on the rise in the U.K., as Citigroup lifted the European banking sector to overweight.

Shares of heavyweight HSBC Holdings PLC (HBC) rose 0.9% and Barclays PLC (BCS) picked up 0.6%.

The FTSE 100 index added 0.3% to 5,886.12.

In France, shares of BNP Paribas SA gained 1.2%, after Citigroup added the stock to its Focus List Europe.

Credit Agricole SA was up 0.7%.

Shares of Renault SA climbed 1.2%, while Peugeot SA shares rose 0.9%, as Citigroup also lifted the European auto sector to overweight.

The CAC 40 index gained 0.4% to 3,594.86.

And in Germany, shares of BMW AG rose 1.1%.

 
   The DAX 30 index  traded 0.3% higher at 7,453.18, with shares of Commerzbank AG   up 2%. 
 

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