London - Europe's main stock markets climbed on Wednesday as investors cheered a long-awaited deal on the US budget, analysts said.
London's benchmark FTSE 100 index rose 0.25% to stand at 6 539.38 points in afternoon deals.
Frankfurt's DAX 30 index gained 0.16% to 9 128.93 points and in Paris the CAC 40 increased by 0.52% to 4 112.41 compared with Tuesday's closing values.
"European indices are trading higher on Wednesday, buoyed by a deal on the US budget that should avert another government shutdown in January," said Craig Erlam, market analyst at Alpari traders.
Congressional negotiators late on Tuesday reached a two-year deal on spending which President Barack Obama hailed as a sign of rare bipartisan co-operation in the strife-filled legislature.
Under an agreement in October that ended a crippling 16-day shutdown, US federal spending authority expires on 15 January when a new agreement would need to be in force.
US stocks opened mostly higher Wednesday on the news of the budget deal, with the Dow Jones Industrial Average advancing 0.14 percent to 15,995.60 points after five minutes of trading.
The broad-based S&P 500 was essentially flat at 1 802.55, while the tech-rich Nasdaq Composite Index tacked on 0.06% to 4 062.89.