LONDON (SHARECAST) - European shares clawed back some of yesterday's heavy losses, with sentiment lifted by hopes that China may announce more measures to restore its economy's mojo.
CAC 40: +25 at 3,439
DAX: +14 at 7,2908
IBEX 35: -12 at 7,842
FTSE MIB: +42 at 15,450
Swiss Market: +6 at 6,546
Stock markets in Hong Kong, Shanghai and Tokyo registered gains on speculation that the Peoples Bank of China injected a net 365bn yuan this week into the Chinese banking system to boost markets ahead of next week's Golden Week holidays.
Spain unveils budget plans
The Spanish stock market was out of step with other markets, however, as the Madrid government unveiled its austerity budget after an extensive delay caused by a Cabinet meeting running into extra time.
Spain's deputy Prime Minister Soraya Saenz de Santamaria said revenue targets for 2012 will be met as the government announced plans to set up an independent fiscal authority that will monitor deficit reduction and spending.
The Spanish government said it would siphon off 3bn from the pension reserve fund to cover its liquidity requirements.
Punters who bet on Spain introducing a 20% gambling tax should go to the window now to collect their winnings. In all, the government unveiled new tax measures that should boost revenues by 4.7bn over two years.
As for the big question over whether Spain would seek a bailout from the EU, Economy Minister Luis de Guindos gave a "definite maybe" style response, saying a decision would be made when the impact of the European Central Bank's bond buying programme on Spain and the Eurozone in general is discernible.
Swedish fashion retailer H&M disappointed the market with its fiscal third quarter sales figures, as it warned of continuing tough conditions in the rag trade.
The group posted sales growth of 0.9% to 3.62bn Swedish kronas (SEK) for its fiscal third quarter, falling short of the SEK4.05bn expected by the market.
French lender Credit Agricole was wanted after Chief Executive Officer Jean-Paul Chifflet indicated it may only be a matter of weeks before its gets shot of its Emporiki Greek unit.
Car makers were mostly in reverse after German manufacturer Volkswagen (VW) suggested some of its competitors might go out of business unless they receive some sort of financial support, as the European car market deteriorates.
VW and sector peer Daimler were among the few DAX constituent stocks to decline, as was tyre maker Continental. In France, car makers Renault and Peugeot also declined. Italy's champion, Fiat, was also friendless.
In the bond markets, German bunds were little changed.
DAX - Risers
Infineon Technologies 5.02 +1.74%
Beiersdorf 57.46 +1.39%
Merck 96.31 +1.35%
DAX - Fallers
Volkswagen 143.30 -2.12%
Commerzbank 1.40 -1.55%
HeidelbergCement 41.69 -0.88%
CAC 40 - Risers
Credit Agricole (ACA) 5.50 +3.89%
Lafarge (LG) 42.60 +2.79%
Schneider Electric (SU) 48.01 +2.42%
Legrand SA (LR) 29.35 +1.95%
Sanofi (SAN) 68.73 +1.67%
L'Oreal (OR) 98.58 +1.67%
EADS (EAD) 24.85 +1.64%
BNP Paribas (BNP) 37.94 +1.62%
Societe Generale (GLE) 22.78 +1.61%
Cap Gemini (CAP) 32.79 +1.38%
CAC 40 - Fallers
LVMH (MC) 119.45 -1.36%
Unibail-Rodamco (UL) 158.65 -1.34%
Accor (AC) 26.39 -1.12%
Veolia Environnement (VIE) 8.63 -0.84%
PPR (PP) 120.10 -0.83%
Peugeot (UG) 5.99 -0.66%
Renault (RNO) 37.01 -0.66%
ArcelorMittal SA (MT) 11.50 -0.52%
Technip (TEC) 86.45 -0.47%
Vallourec (VK) 33.76 -0.06%