European stocks may mover higher on Wednesday, extending yesterday's gains, as optimism prevails on a Greek parliament vote on austerity measures, crucial to avert a sovereign default and the risk of contagion to other euro zone countries.
Meanwhile, European Central Bank President Jean-Claude Trichet reiterated that the bank was in a "strong vigilance mode" over price pressures, signaling an impending rise in the benchmark interest rate when the ECB's governing board will meet next week.
Barring China and New Zealand, the other Asian markets are edging higher, with the Japanese market leading the gains after data showed the nation's industrial output rose at the fastest monthly pace in more than 50 years in May. According to data released by the Ministry of Economy Trade and Industry, industrial production rose 5.7 percent in May compared to April, the biggest gain since 1953.
Closer home, the French economy expanded at a slower than previously estimated rate in the first quarter, a revised report from the statistical office Insee showed. The gross domestic product rose 0.9 percent quarter-over-quarter, revised down from 1 percent increase estimated earlier. This follows a 0.3 percent expansion in the fourth quarter of 2010.
Economic sentiment survey results from Eurozone and mortgage approvals from the U.K. are among the other data scheduled to be released in the session.
In corporate news, French heavy engineering firm Alstom said it received shareholder nod to renew the appointments of chairman and CEO Patrick Kron,Candace Beinecke, Jean-Martin Folz, James William Leng, Klaus Mangold and Alan Thomson as directors for a 4-year period.
U.K.-based specialty biopharmaceutical company Shire Plc said it has completed the previously announced acquisition of Advanced BioHealing Inc.
German lender Commerzbank aims to grow its credit business with smaller companies in the renewable-energy sector to about 5.5 billion euros by the end of the year, Handelsblatt reported.
Automaker Volkswagen said it would build two new manufacturing plants in China. Each of the plants will have an annual capacity of 300,000 vehicles and production will start in 2013.
European stocks rallied on Tuesday, with banks leading the gainers, as Greece seemed sure to pass austerity measures in return for emergency funding from its EU neighbors and the International Monetary Fund. Greek Parliament will likely adopt sweeping budget reforms on Wednesday, and the EU is expected to announce a second rescue package on Sunday.
The Euro Stoxx 50 index of eurozone bluechip stocks rose a percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, closed up 0.4 percent. Around Europe, the German DAX added 0.9 percent, France's CAC 40 added 1.5 percent and the U.K.'s FTSE 100 advanced 0.8 percent.
The major U.S. averages closed up between 1.2 percent and 1.5 percent overnight, with continued optimism about the likelihood of a resolution to the Greek debt crisis generating buying interest.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.