LONDON Jan 25 German shares led European bourses higher on Friday on trader talk that a key sentiment indicator due at 0900 GMT would beat expectations.
Economists expected Germany's Ifo survey to come in at 103.0, compared with 102.4 in the previous month, but a recent string of strong economic data out of Europe's largest economy, including the ZEW survey earlier this week, raised market expectations for a good reading.
"The rumours are that the IFO will come in better than expected," said Ion-Marc Valahu, who helps run Geneva-based hedge fund Clairinvest.
Germany's Dax index rose 1 percent, while the pan-European FTSEurofirst 300 index rose 0.2 percent to 1,173.15 points.
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