European markets rise on China expectations, Spain budget

Markets advanced across Europe on Thursday, paced by Milan, as stocks were lifted by expectations that China could introduce growth-boosting measures and after Spain announced its 2013 budget. Milan's FTSE MIB index rose 0.3% to 15,450 points. The yield spread between 10-year Italian bonds and the German benchmark fell, as investors' concern about the ongoing debt crisis was pared by expectations of a possible economic recovery. The spread, a barometer of Italy's borrowing costs in the eurozone crisis, fell. It closed at 366 points with 10-year yields at 5.1%. The Frankfurt Dax bourse advanced 0.2% to 7,290, while the Paris Cac 40 Index rose 0.7% to 3,439 points. London's Ftse-100 stock market 0.2% 5,779 points.