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In company news, a hearing will be held in Victoria's Supreme Court to finalise National Australia Bank's settlement of a class action brought by shareholders.
German optimism sends stock higher
A rebound in investor confidence in eurozone powerhouse Germany has sent Frankfurt stocks to a near-five-year high, lifting equities across Europe.
Frankfurt's DAX 30 added 0.78 per cent to 7589.75 points, its highest level since the beginning of 2008.
Meanwhile in Paris the CAC 40 jumped 0.94 per cent to reach its highest level since July 2011 at 3646.15 points.
London's FTSE 100 index of leading companies edged up 0.06 per cent to 5924.97 points, close to a nine-month high.
Milan's FTSE Mib benchmark meanwhile rebounded by 1.51 per cent to 15,585.61 points, a day after slumping 2.22 per cent after Italian Prime Minister MARIO MONTI announced his intention to resign.
Madrid's IBEX 35 rose 1.49 per cent to 7920.9 points.
New data shows German investor sentiment topped a seven-month high this month on hopes Europe's top economy will dodge recession.
The investor confidence index, calculated by the ZEW economic institute, soared to 6.9 points in December from minus 15.7 points in November - its highest reading since May.
Dollar hits three-month high
The Australian dollar has rallied to its highest level in almost three months after a surprise rebound in German investor confidence lifted global markets.
At 07.00am AEDT, the currency was trading at 105.22 US cents, up from 104.82 cents yesterday afternoon.
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