European stocks rise as leaders reach budget deal

<p>European stocks made gains after EU leaders concluded their negotiations.</p>

The main European stock benchmarks have made gains in the final trading session of the week (February 8th), as European Union (EU) leaders reach a deal for the region's budget.

Decision-makers have been thrashing out a negotiation for two days for where the EU's money will go between 2014 and 2020.

The deal was announced by president of the European Council Herman van Rompuy, who said it was "worth waiting for".

After the marathon talks, the new budget amounts to €908 billion (£769.7 billion) in forecast payments.

It is the first ever reduction in the EU's multi-annual budget, which amounts to around one per cent of the EU's overall gross domestic product.

The new deal must still be approved by the European Parliament and MEPs previously said they were prepared to block any proposals that amounted to an "austerity" budget.

At 16:20 GMT, the Frankfurt Dax index rose by 0.7 per cent to an index value of 7645.9 points and the Parisian Cac 40 increased by 1.4 per cent to 3651.3 points.

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