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LONDON (The Deal) -- European markets rose, as shares in carmakers and commodities companies moved ahead.

In Germany, after disappointing factory orders figures on Tuesday, the Federal Statistical Office said German industrial output contracted 1.2% month-on-month in August, whereas analysts and economists had predicted a 0.2% rise.

Meanwhile, U.K. industrial output increased 1% month-on-month in August, far better than the 0.3% rise predicted, official figures showed.

In London, the FTSE 100 was up 0.72% at 6,371.56 and in Paris the CAC 40 gained 0.74% to 4,694.96.

Both benchmarks have been on a winning streak since Thursday. In Frankfurt, the DAX posted its fourth consecutive rise, as of mid-morning, and was up 1.06% at 10,007.47.

In London, brewer SABMiller (SBMRY)  was up more than 1% as of mid-morning at 3,662.5 pence after receiving a sweetened £68.2 billion ($104 billion), or 4,215 pence-per-share, takeover proposal from Anheuser-Busch InBev (BUD) . The Anglo-South African brewer said its board will consider the proposal but noted that it is only 15 pence higher than a tentative 4,200 pence sweetened offer the Budweiser maker mooted on Tuesday. Anheuser-Busch, which said it wants a recommendation from its target's board in order to proceed, was up 2.6% in Brussels.

Grocer Tesco (TESO)  rebounded from initial losses to trade up more than 1% in London by mid-morning after announcing first-half results including a 1.3% decline in same-store sales in the U.K. and Ireland. That decline represented an improvement from the first-quarter picture.

Overall revenue fell 1.9% to £23.9 billion, while operating profit more than halved to £354 million. Tesco said markets remain challenging and confirmed it would keep its dunnhumby data unit after a "comprehensive strategic review" which reportedly garnered ever-dwindling bid interest at ever-lower prices.

Mining stocks Anglo American (AAUKF) , Rio Tinto Group (RIO) and Antofagasta (ANFGF)  led the gainers on the FTSE 100. A rise in oil prices lifted oil producers including BP (BP)  and Royal Dutch Shell (RDS.A) .

But across Europe airlines including International Consolidated Airlines, Air France-KLM and Deutsche Lufthansa fell on fears higher fuel prices will erode profit. Discount airline EasyJet was down close to 5% in London, making it the lead decliner on the FTSE 100.

Carmakers rose, led by Volkswagen, which was up more than 5% after new CEO Matthias Müller told the Frankfurter Allgemeine Zeitung it expects to start an 11 million vehicle recall in January and complete the job by year-end. Müller replaced Martin Winterkorn last month after revelations VW had rigged diesel emissions tests.

Peugeot and Renault, Fiat Chrysler Automobiles (FCAU) , and Bayerische Motoren Werke and Daimler also posted gains.

In Tokyo, the Nikkei 225 closed up 0.75% at 18,322.98 and the Topix ended the day up 1.17% at 1,493.17.

In Hong Kong the Hang Seng closed up 3.13% at 22,515.76. Mainland Chinese markets were closed and will reopen Thursday.

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