MW: Europe sets 14-month highs Greek stocks advance
Frankfurt's DAX benchmark reclaims 6,000 mark
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- European stock markets marked fresh 14-month highs on Monday, with Greek stocks trading firmer after the government passed a budget for 2010 and with utilities and financials ranking among the strongest sectors.
Equity volumes were thin, however, with London closed for a holiday.
European stock indexes last week climbed to highs last seen since October 2008 ahead of the Christmas holiday, and markets were surpassing those levels to start the final week of the 2009.
The pan-European Dow Jones Stoxx 600 index (ST:SXXP 252.97, +1.07, +0.43%) rose 0.4% to 253.04, after closing at 251.45 last Wednesday, the loftiest in 14 months.
In Paris, the CAC-40 (FR:PX1 3,945, +32.45, +0.83%) rose 0.8% to 3,945.43, which surpasses the previous 14-month closing high of 3,912.73 set Dec. 24. The German DAX index (DX:DAX 5,999, +41.47, +0.70%) climbed 0.7%, breaking through the 6,000 barrier, the first time it has reached that point since September 2008.
Among stocks on the move, shares of Greek companies were trading higher after the government -- under internal and external pressure to get its finances in line -- on Dec. 24 passed a budget for fiscal 2010 aimed at lowering the country's deficit to single digits as a percentage of gross domestic product and pulling Greece out of a deep financial crisis.
The budget will rely on spending cuts and higher taxes. Greece suffered its third ratings downgrade on its sovereign debt in a month last week.
Shares of Alpha Bank and OPAP (DE:GF8 15.00, -0.21, -1.38%) , the Greek lottery operator, were each up more than 2%. Coca-Cola Hellenic Bottling (CCH 23.04, -0.20, -0.86%) traded up nearly 1%.
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Among the more heavily weighted stocks in Europe, shares of German utility E.On (DE:EOAN 29.11, +0.43, +1.50%) added 2.5%.
Oil stocks were higher, with Total (TOT 65.27, +0.58, +0.90%) up just over 1% as crude-oil futures rose past $79 a barrel.
Technology stocks were also moving higher, with Infineon Technologies (DE:IFX 3.85, +0.03, +0.65%) up 1.8%.
Gains for Asia were also supporting Europe, with the Chinese market spurred by Premier Wen Jiabao's comments over the weekend indicating the government will not rush to unwind stimulus policies. Last week, China revised up its GDP for 2008 by 4.5%.
