European Markets Rise On Positive U.S. Data

European markets rose Thursday following encouraging data from the U.S., but investors remain watchful ahead of the European Union summit in Brussels on Thursday and Friday, where leaders will discuss tackling the EU debt crisis with concrete measures

The German DAX 30 index rose 0.15 percent or, 6.52 points, to 6235.51. Shares of Daimler AG rose 1.40 percent and shares of Volkswagen AG advanced 0.51 percent.

The French CAC 40 index rose 0.12 percent or, 3.77 points, to 3066.89. Shares of Peugeot SA rose 1.34 percent and shares of Renault SA advanced 1.03 percent.

London’s FTSE 100 index rose 0.08 percent or, 4.23 points, to 5528.15 shares of BG Group PLC rose 0.88 percent, and shares of HSBC Holdings PLC declined 0.82 percent.

Spain's IBEX 35 dropped 0.14 percent, or 9.50 points, to 6657.40. Shares of Bankia SA fell 3.31 percent, and shares of Banco Santander SA were down 0.70 percent.

Investor sentiment was positive after data from the U.S. showed durable goods orders and pending home sales rising in May compared to April.

Investors are focusing on the June 28-29 European summit in Brussels. Market players are expecting EU leaders to submit a road map for the banking and fiscal union for the next 10 years at the summit.

Markets would like to see that Europe has a long-term vision and a clear road-map toward a higher degree of political, economic, banking and fiscal integration.

However, so far there have been very few meaningful signs of progress. While Germany has reiterated its opposition to debt mutualization in the form of euro bonds in the near term and has continued to favor closer political integration at the euro zone level, France takes an opposing view on political integration.

So far, Germany, which is opposed to providing more funds without central budget supervision, and France, which is against ceding power to the EU, are not willing to alter their stances radically.