LONDON: European stock markets rose on Wednesday as investor sentiment was boosted by solid earnings news from US computer giant Dell and Dutch brewer Heineken, dealers said.
London's FTSE 100 index of top shares added 0.49 percent to 6,066.91 points in late morning trade, Frankfurt's DAX 30 climbed 0.18 percent to 7,412.96 points and the Paris CAC 40 gained 0.79 percent to 4,142.84.
The Stoxx 50 index of leading eurozone companies added 0.75 percent to 3,053.04 points approaching the mid-way stage.
"European indices are better after strong earnings from Dell and Heineken, and fresh merger and acquisition activity -- which is good for investment banks, if no one else," said GFT analyst David Morrison.
Dell fiscal fourth-quarter earnings nearly tripled as the computer maker reported strong demand from corporate customers and lower component prices.
Heineken said on Wednesday its 2010 net profit jumped 41 percent to 1.44 billion euros ($1.94 billion), boosted by last year's acquisition of FEMSA, Latin America's largest beer maker.
In London, the Bank of England forecast on Wednesday that the British economy, which suffered a shock contraction in the final three months of last year, would likely avoid a double-dip recession.
However, the central bank, releasing its quarterly economic report, also predicted annual inflation would hold "well above" its target of 2.0 percent this year, and would fluctuate between 4.0 and 5.0 percent in the near term.
"The projection for four-quarter growth is weaker than in November for much of 2011, following the weak data around the turn of the year," the report said.
"The strength of the recovery is likely to be dampened by the fiscal consolidation and a continuing squeeze on households' purchasing power from the effects of higher commodity prices and a persistent impact of the recession on productivity and hence wages."
Separately, official data showed that the number of unemployed people in Britain climbed close to 2.5 million in the three months to December, while youth unemployment hit a record high.
In Asian trade earlier Wednesday, markets were mixed, with Tokyo hitting a nine-month high on the back of a weaker yen while upbeat US data also provided some support.
Tokyo rose 0.57 percent to end at 10,808.29, its best finish since April 30, while Shanghai added 0.85 percent and Hong Kong closed up 1.12 percent.
In Tokyo exporters led the gains after the dollar struck a two-month high against the yen in New York.
The US currency is riding high after the US Federal Reserve said manufacturing activity in the New York region accelerated in February to its highest level since June.
However retail sales, a key indicator of the consumer spending that drives two-thirds of the economy, slowed to a weaker-than-expected 0.3 percent rise in January.
On currency markets, the euro was bolstered by news that troubled German state-controlled lender WestLB had reached a deal on its further restructuring and down-sizing before a crucial deadline, dealers said.
In Wall Street action on Tuesday, stocks closed lower as investors mulled mixed economic data and signs of building inflationary pressures.
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