(MENAFN- AFP) European stocks rose on Wednesday with sentiment buoyed by reports of Chinese stimulus, ahead of a US interest rate call and on the eve of Scotland's independence referendum.
By mid-afternoon in the British capital, London's benchmark FTSE 100 index added 0.07 percent to 6,796.70 points as traders looked ahead to Scotland's independence vote.
In Paris, the CAC 40 index gained 0.64 percent to stand at 4,437.57, with the market bolstered after the French government won a confidence vote on its economic reforms.
Frankfurt's DAX 30 advanced 0.53 percent to 9,683.95 points compared with Tuesday's closing level.
Russian stocks fell after the news top businessman Vladimir Yevtushenkov had been placed under house arrest in a money laundering probe.
Sentiment on Wall Street at the opening was steady.
- China stimulus boost -
Asian equities mostly rose, with Hong Kong and Shanghai lifted by a report that China's central bank had pumped $81 billion (62 billion euros) into the country's five biggest lenders, while traders awaited the Fed's monetary policy decision.
Wall Street stocks posted solid gains overnight following reports of the new Chinese stimulus plan.
"Last night's US session saw the Dow finish at a new all-time closing high, with a fresh intraday high to boot, and the positive momentum has been carried across in London," said analyst Chris Beauchamp at trading firm IG.
"Added to this was news last night that the 'No' campaign still has the advantage - albeit a small one - over its rivals."
Campaigners for, and against, Scottish independence scrambled for votes on Wednesday on the eve of a knife-edge referendum that could see Scotland break away from the United Kingdom.
Three new opinion polls published in Wednesday's papers all suggested a narrow majority supporting staying in the UK but also showed that undecided people could swing it either way.
Global equities won support from a report on web portal Sina, which said the People's Bank of China would inject 500 billion yuan ($81 billion) into the five top state-owned banks, with a view to boosting lending to businesses.
The move would be a major stimulus injection following a string of weak data that has raised questions about the state of the world's number two economy.
The injection, a three-month low-interest rate loan, is similar to a 0.5-percentage point cut to the ratio of cash China's entire banking system must keep in reserve, according to Dow Jones Newswires.
In reaction, Shanghai stocks rose 0.49 percent, Hong Kong jumped 1.00 percent and Seoul advanced 0.96, but Tokyo fell 0.14 percent.
- Focus turns to Fed -
Investors were watching to see if the Federal Reserve will bring forward its timetable for raising interest rates as the US economy picks up speed.
The Fed has previously said it would keep rates low for a "considerable time" after ending its massive stimulus programme.
There are still concerns about the US economy among many investors, with some suggesting the bank will stick to its cautious approach.
Markets on Wall Street opened little changed, with the Dow Jones Industrial Average down 0.03 percent and the tech-rich Nasdaq up 0.04 percent minutes into trading.
The broad-based S&P 500 advanced 0.18 percent.
In Britain however, attention was squarely focused on Scotland's looming referendum.
The pound had slumped last week to a 10-month dollar low and three-month euro troughs on concerns over the impact of possible Scottish independence.
"US Federal Reserve won't be overly hawkish at its rate setting meeting this evening," said Tony Cross, market analyst at Trustnet Direct. "This is being backed up by currency markets with (the pound and the dollar) fast closing in on the levels we saw... 10 days ago."
In Wednesday deals, the pound rose to $1.6241 from $1.6268 late in New York on Tuesday.
The euro retreated to 79.39 pence from 79.64 pence.
The European single currency edged up to $1.2972 from $1.2957 on Tuesday.
On the London Bullion Market, gold gained to $1,236.50 an ounce from $1,232.25.
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