Markets gain on hopes for Friday's crucial EU summit

European stock markets opened higher this morning ahead of a crucial eurozone meeting on Friday which could decide the future of the single currency.

The German Dax gained 0.56% to 6,114 and France's Cac 40 rose 1.04% to 3,198. The Euro Stoxx 50 was up just over 1% at 2,367.

Meanwhile London's FTSE 100 was fairly flat, up 0.2% to 5,563.

Investors are pinning hopes on this week's EU summit, while French president Nicolas Sarkozy and German Chancellor Angela Merkel are meeting today to try to hammer out a solution to the debt crisis.

The leaders have opposing views on the future of the eurozone - Merkel favours more strict EU central control while France wants to preserve national sovereignty.

Meanwhile Ireland and Italy have both unveiled a new raft of austerity measures including hefty spending cuts to support their failing economies.

Although what is decided on Friday could take months to implement, a strong, unified expression of intent could reassure markets enough to lower borrowing costs for Italy, Spain and other highly indebted eurozone countries.

US futures indicated a positive open on Wall Street this afternoon, boosted by hopes that progress on the eurozone crisis could boost US stocks.