European Stocks Are Driven to Fresh Highs
European stocks soared to close at their highest level in more than two years, helped by an extension to U.S. income-tax cuts and the presentation of tough austerity measures for Ireland to help sort out its public finances.</br></br>In Asia, Shanghai stocks recovered from initial losses suffered after a media report said China's central bank may raise rates around the weekend, while Australian shares advanced after the central bank there left interest rates unchanged and signaled a steady monetary policy.</br></br>The Irish government was expected to successfully pass its austerity budget in order to qualify for financial aid from the European Union and the International Monetary Fund. The vote was expected after the close of European financial markets.</br></br>The Stoxx Europe 600 index ended up 0.9% at 273.91, its highest close since Sept. 19, 2008. Germany's DAX also posted a record, closing 0.7% higher at 7001.91 and trading above the 7000 mark for the first time since June 2008.</br></br>The U.K.'s FTSE 100 closed up 0.7% at 5808.45, France's CAC-40 closed 1.6% higher at 3810.50, and Ireland's ISEQ rose 1.7% to close at 2799.97.