By Carla Mozee, MarketWatch

European stocks edged up Wednesday, with Germany's benchmark rising to its highest level in nearly two years, while further weakness in the euro also provided support.

The Stoxx Europe 600 was up 0.2% at 374.22, on course for a fourth straight win, and trading at its best levels since late 2015. The regional benchmark on Tuesday rose 0.6% to 373.40 (http://www.marketwatch.com/story/european-stocks-rise-as-manufacturing-activity-perks-up-2017-02-21), the best close since Dec. 2, 2015, helped by a better-than-expected preliminary reading on manufacturing activity in the eurozone (http://www.marketwatch.com/story/eurozone-economy-shifts-up-a-gear-pmis-show-2017-02-21).

On Wednesday, Germany's closely watched Ifo business climate index came in above expectations, with a reading of 111.0 in February compared with a 109.5 estimate, according to Dow Jones Newswires.

Germany's DAX 30 tacked on 0.2% at 11,988.98 and earlier crossed above the 12,000 mark for the first time since April 2015. The export-oriented index was aided by a decline in the euro against the U.S. dollar, hitting an intraday low of $1.0496.

Movers: Thyssenkrupp AG shares (TKA.XE) surged 5.7% after the German industrials heavyweight said it's selling its Brazilian steel plant (http://www.marketwatch.com/story/thyssenkrupp-to-sell-brazil-steel-unit-for-eur15b-2017-02-22) to Ternium SA (TX) in a deal valued at EUR1.5 billion.

But at the bottom of the DAX 30 were shares of Bayer AG (BAYN.XE) as they fell 2.2%. The chemicals conglomerate Bayer AG said fourth-quarter net profit dropped 26% to EUR453 million (http://www.marketwatch.com/story/bayer-4q-profit-falls-26-missing-expectations-2017-02-22)from a year earlier, hurt by one-off expenses.

London-based lender Lloyds (LLOY.LN) (LLOY.LN) rose 3.6%. The bank's pretax profit more than doubled to GBP4.2 billion ($5.2 billion), as it reduced the amount set aside to cover compensation for customers sold payment-protection insurance (PPI) they didn't need. It has also carried out a program of cost cuts, including the closure of branches.

Lloyds said it will pay a total ordinary dividend of 2.55 pence a share, up 13% on a year ago. It will also issue a special dividend of 5 pence per share.

UBM PLC (UBM.LN) climbed 4.7% as the business exhibitions company projected underlying revenue growth in 2017 (http://www.marketwatch.com/story/ubm-projects-underlying-revenue-growth-in-2017-2017-02-22).

   Indexes: The FTSE 100  was up 0.3% at 7,297.22  and France's CAC 40   was up 0.4% at 4,909.22. 

The shared currency was up $1.0514, but was still down from $1.0545 late Tuesday in New York.

"Political risk from the French presidential election is becoming a key driver of increasing euro weakness in recent days. With a deterioration in polling numbers for candidates such as Francois Fillon and Emanuel Macron, the prospects of Marine Le Pen improve," said Richard Perry, market analyst at Hantec Markets, in a note. Le Pen, the head of the far-right National Front party, has called for France to leave the European Union and the euro. The first round of voting is set for April 23.

"Whilst the market is still not anticipating a victory for Le Pen in the second round, the probability is apparently now above 40% and there still needs to be an adjustment to factor in the increased risk," Perry said.

See:Euro may retest $1.03 as Le Pen rises in the polls (http://www.marketwatch.com/story/investors-bidding-adieu-to-french-stocks-as-le-pen-gains-in-polls-2017-02-21)

 

(END) Dow Jones Newswires

February 22, 2017 05:08 ET (10:08 GMT)

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