Investing.com - European stocks advanced in Friday trade, getting a lift from a Group of 20 pledge to coordinate efforts in staving off further debt deterioration in the euro-zone.
At the end of Friday’s European session, the STOXX 50 Index added 1.52% to 2,026.03, France’s CAC 40 climbed 1.02% to 2,810.11, Britain’s FTSE rose 0.24% to 5,053.71, and Germany’s DAX advanced 0.63% to close at 5,196.56.
Late Thursday, finance ministers and central bank governors from the Group of 20 major economies vowed a coordinated effort to resolve Europe’s financial crisis.
In a statement issued from Washington where the International Monetary Fund was holdings its annual meeting, the G-20 said it would be working in the next few weeks to expand the powers of the USD595 billion rescue fund to support troubled banks.
Officials added the group’s aim was to “increase the flexibility” of the European Financial Stability Facility and “maximize its impact.”
G-20 officials had not planned on issuing a statement but decided to make a public announcement following recent sharp downturns on global equity markets and persistent fears of a contagion of euro-zone sovereign debt.
“We will ensure that banks are adequately capitalized and have sufficient access to funding to deal with current risks,” the statement said.
Hopes for a speedy resolution to European debt woes were tempered by remarks from European Central Bank Governing Council member Klaas Knot, who was quoted in a Dutch newspaper saying that Greek default could no longer be ruled out.
“All efforts are aimed at preventing this, but I am now less certain in excluding bankruptcy than I was a few months ago,” Knot, who heads the Dutch central bank, told Reuter’s news.
Mining issues led decliners in European trade Friday, dragged down by slumping prices on commodity markets. Silver was on track for its worst one-day loss ever, plummeting 16.5% in U.S. afternoon trade.
In London, Rio Tinto PLC fell 1.25% while BHP Billiton PLC dropped 3.03%.
BNP Paribas SA and Societe General SA, rose in Paris trade after a report that the French government was prepared to boost capital in France’s two largest banks.
BNP Paribas leapt 9.8% while Societe General surged to close higher by 8.7%.
German pharmaceutical giant Bayer, jumped 7.1% after gaining approval of its heart drug Xarelto from a European drug advisory panel.
Meanwhile in late afternoon trade on Wall Street, the Dow Jones Industrial Average was up 0.25% to 10,760.40, the Nasdaq Composite Index was lifted 0.96% to 2,479.20 and the S&P 500 was higher by 0.55% at 1,135.76.