German stocks edged higher on Wednesday as reports that a Greek debt deal is in progress and the Federal Reserve's commitment to keep interest rates low despite last week's robust jobs report bolstered appetite for riskier assets. The euro rose to an eight-week high against the dollar on hopes that Greece is nearing a debt-restructuring deal.
Meanwhile, investors shrugged off the latest figures from the Federal Statistical Office which showed German exports fell 4.3 percent month-over-month in December, the sharpest pace since January, after a 2.6 percent growth in November. At the same time, annual export value breached the trillion-mark for the first time on record in 2011.
The benchmark German DAX is currently at 6,809, up 54 points or 0.8 percent from its previous close, while France's CAC 40, the U.K.'s FTSE 100 and Switzerland's SMI are rising between 0.2 percent and 0.5 percent.
The Euro Stoxx 50 index of eurozone bluechip stocks is moving up 0.6 percent while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.3 percent.
Deutsche Bank AG is rising 2.3 percent after a U.S. federal court dismissed two separate lawsuits against the investment bank accusing it of misleading investors about the quality of risky residential mortgage-backed securities it sold.
CommerzBank is climbing 8 percent after its Polish unite BRE Bank beat estimates with a 46 percent rise in fourth-quarter profit on the back of strong growth in loans and mortgages.
Douglas Holding is adding 0.7 percent after the company confirmed its outlook for fiscal 2012. TAG Immobilien is declining half a percent after the Hamburg-based realtor said it has decided to extend a takeover bid to the minority shareholders of Bau-Verein zu Hamburg Aktien-Gesellschaft at EUR 4.50 a share.
Shares of Gerresheimer are plunging 6 percent after the pharma and healthcare industry supplier reported a 21 percent decline in its fourth-quarter profit despite higher revenues.
Elsewhere, Asian markets rose across the board on Wednesday as worries over Greece eased and Toyota Motor raised its profit forecast. Trading in the U.S. index futures signal a positive start on Wall Street, with the Dow, Nasdaq and S&P 500 futures up modestly.
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