European Markets Gain After Merkel’s Comments On ECB

European markets rose Friday as investor sentiment turned positive amid hopes that German Chancellor Angela Merkel would step up measures to alleviate the debt burden faced by the euro zone and revive the economic growth momentum.

The French CAC 40 index rose 0.27 percent or 9.47 points to 3489.96. Shares of Credit Agricole SA advanced 1.51 percent and those of Vinci SA rose 0.85 percent.

London's FTSE 100 index was up 0.26 percent or 13.96 points to 5848.47. Shares of Barclays PLC rose 1.50 percent and shares of Fresnillo PLC were up 0.79 percent.

The German DAX 30 index rose 0.13 percent or 9.06 points to 7005.35. Shares of Deutsche Bank AG advanced 0.89 percent and those of Daimler AG rose 0.66 percent.

Spain's IBEX 35 was up 0.66 percent or 49.10 points to 7466.40. Shares of Bankia SA rose 9.56 percent and shares of Acciona SA advanced 1.73 percent.

Market confidence was lifted after Merkel said at a joint press conference with Canadian Prime Minister Stephen Harper in Ottawa Thursday that she supported the European Central Bank President Mario Draghi's pledge last month to do "whatever it takes" to save the euro.

"The European Central Bank, although it is of course independent, is completely in line with what we have said all along," she said.

Earlier this month, the ECB said that it might buy the Spanish bonds if the government first applied for the European Financial Stability Facility (EFSF) support. The ECB has said that relevant committees within the bank would design the appropriate modalities for the bond purchases in the coming weeks, suggesting that the whole thing could get the go-ahead in just a few weeks' time.

EFSF bond purchases require the explicit agreement of all member states, including ratification by the German Parliament. The EFSF has 218 billion euros left after paying 30 billion euros ($40 billion) to Spanish banks. The EFSF has already promised 70 billion euros to the Spanish banking sector should it require it. Once the European Stability Mechanism (ESM) has been ratified, a total of 400 billion euros will be available.