European stocks advanced

European stocks advanced, extending an 18-month high, amid optimism U.S. lawmakers will agree on a budget.

About 80 members of Congress, comprising Republicans and Democrats, signed a letter calling for an exploration of “all options” in a bid to end a deadlock between President Barack Obama and House Speaker John Boehner over taxes for the highest- earning Americans.

Obama and Boehner spoke by telephone yesterday, according to Boehner spokesman Michael Steel. Congress must reach an agreement over the budget by the end of the year to prevent more than $600 billion of automatic tax increases and spending cuts from coming into effect.

European Central Bank President Mario Draghi will unveil updated economic forecasts, including the first outlook for 2014, at a press conference scheduled for 2:30 p.m. in Frankfurt. Economists projected the central bank will keep its benchmark interest rate unchanged at a record low of 0.75 percent, in a decision due 45 minutes before the briefing.

A separate survey of economists projected the Bank of England will also leave its interest rate unchanged in an announcement due at noon in London.

European Aeronautic, Defence & Space Co. jumped 7.8 percent to 29.36 euros after the company, which failed to win government approval for a merger with BAE Systems Plc earlier this year, changed its ownership structure to allow Germany and France to each hold a 12 percent stake. EADS also said it will buy back as much as 15 percent of outstanding shares.

Daimler advanced 1.2 percent to 38.67 euros after selling a 7.5 percent-stake in EADS, valued at 1.66 billion euros ($2.17 billion). The automaker will sell more of its remaining 7.5 percent holding after a lock-up period of 180 days from the end of the sale of the first tranche.

GDF Suez tumbled 13 percent to 15 euros, its lowest intra- day price since July 2005, after Europe’s largest utility by market value said late yesterday that recurring net income will be 3.1 billion euros to 3.5 billion euros next year, compared with an expected 3.7 billion euros to 4.2 billion euros in 2012.

На текущий момент:

FTSE 100 5,904.49 +12.41 +0.21%

CAC 40 3,606.2 +15.70 +0.44%

DAX 7,531.89 +77.34 +1.04%