Stocks advance on Spanish cutbacks

LONDON - European stock markets and the euro advanced on Wednesday after Spain unveiled new spending cuts which helped offset worries about the continent's debt crisis. Britain's financial markets meanwhile gave a lukewarm response to the country's first coalition government since World War II.

Solid German economic growth figures also helped fuel the rally, particularly in Frankfurt, where the DAX was up 102.85 points, or 1.7 percent, at 6,140.56.

The CAC-40 in France was 24.15 points, or 0.7 percent, higher at 3,717.35.