German shares rose on Monday as opinion polls showing a lead for Greece's pro-bailout conservatives and reports that Europe is preparing a new rescue fund to seize control of struggling banks across the continent lifted investor sentiment.
However, trading volumes remain thin due to holidays in the U.S. and in part of Europe. Monday is a public holiday in Germany and France, although their markets are open for trading.
The benchmark index DAX is currently up 46 points or 0.73 percent at 6,386, while France's CAC 40 is adding a percent, the U.K.'s FTSE 100 is moving up 0.89 percent and Switzerland's SMI is up 0.22 percent.
The Euro Stoxx 50 index of eurozone bluechip stocks is gaining half a percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is moving up 0.44 percent.
Banks are trading mixed, with Deutsche Bank rising half a percent, while CoommerzBank is down more than a percent.
Automakers such as Daimler, Volkswagen and BMW are gaining between 0.6 percent and 1.7 percent after reports suggested that the Chinese government will soon resume paying subsidies to vehicle buyers in rural areas in an attempt to rekindle demand.
Thyssenkrupp is rallying 1.8 percent after its chief executive Heinrich Hiesinger told German newspaper Euro am Sonntag that that the company's Steel Americas business will continue operating at a loss until at least next year.
Hochtief is up 1.8 percent on reports that it is eying more joint venture projects with Spanish parent ACS . Deutsche Wohnen AG is down 0.2 percent. The real estate firm said it has agreed to acquire Barclays Plc's German real estate unit along with its about 23,500 residential units for 1.235 billion euros.
Elsewhere, most Asian stocks rose on Monday, commodities gained ground and the euro edged higher against the dollar as Greek opinion polls showing a lead for parties supporting the European Union's bailout eased concerns that the country will leave the euro.
by RTT Staff Writer
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