Print

Mail

wiki links

European markets boosted by strong corporate results

European stock exchanges surged ahead on Friday, with markets in Paris and Frankfurt jumping to levels not seen since early 2002 on strong corporate results and prospects for stable eurozone monetary policy.

The London FTSE 100 index rose 0.77 percent to close at 5,528.1 while in Paris the CAC 40 added 0.56 percent to reach 4,662.50, its highest reading since March 2002.

In Frankfurt the DAX gained 0.79 percent to finish at 5,307.99, breaking through the 5,000-point barrier for the first time since April 2002.

Analysts said traders were relieved that the head of the European Central Bank, Jean-Claude Trichet, had said Thursday's interest-rate hike was not the start of a series of rate increases.

The Euro STOXX 50 index of leading eurozone shares rose 0.52 percent to end the week at 3,519.66.

On the currency market the euro slipped to US$1.1705 from US$1.1725 on Thursday.

Analysts said underlying sentiment remained positive following a report that US payroll growth recovered last month, with 215,000 new jobs created, the best one-month performance since July.

The jobs report is seen as one of the best signs of economic momentum.

In London oil companies were strengthened by a spike in crude prices. BP rose 1.08 percent to reach £6.5660 while Royal Dutch Shell gained 0.90 percent to finish at £19.04.

Mobile phone giant Vodafone fell back 2.39 percent to £1.2275 on comment from Credit Suisse First Boston suggesting an intensification in competition in the European mobile telephone sector.

In Paris the European satellite operator Eutelsat shed 0.50 percent to reach 11.94 euros on its first day as a listed company, a move aimed at raising 860 million euros (US$1 billion) to help reduce debt.

Elsewhere there were gains of 0.46 percent to 34,745 on the SP/MIB in Milan, 0.69 percent on the Swiss Market Index, 0.78 percent to 429.48 on the AEX in Amsterdam and 0.76 percent to 3,458.90 on the BEL-20 in Brussels. In Madrid the IBEX-35 fell 0.27 percent to 10,678.7.
This story has been viewed 1372 times.