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EU markets end week in bullish mood

European stock markets ended the week in positive territory on Friday, bolstered by better-than-expected US data and a strong showing in the oil sector.

The London FTSE 100 index gained 0.34 percent to close at 6,339.40 points while in Paris the CAC 40 rose 0.65 percent to 5,634.75. The Frankfurt DAX added 0.62 percent to finish at 6,899.06.

The Euro STOXX 50 index of leading eurozone shares advanced 0.52 percent to finish at 4,191.58.

On the currency market the US dollar firmed against the euro on stronger-than-expected figures on US home sales that eased concerns about the health of the country's housing market.

The single euro in late trading was at US$1.3295 after US$1.3328 late on Thursday in New York.

Wall Street shares traded modestly higher at midday, reversing early losses after the report on US home sales. At 4:10pm GMT, the Dow Jones Industrial Average traded up 0.27 percent at 12,494.79.

The NASDAQ composite edged up 0.08 percent to 2,453.75.

Wall Street had a generally positive reaction to the latest news on the housing front, which has been the weakest sector of the US economy.

The National Association of Realtors reported US home sales rose 3.9 percent in February as the struggling real estate market showed some signs of a rebound.

The annualized pace of 6.69 million was well ahead of market expectations of a pace of 6.30 million. But median home prices fell.

"The better-than-expected report provides some hope that a bottom is close in the US housing correction -- at least on the sales front," said Sal Guatieri, economist at BMO Capital Markets. "That said, the report is just one in a sea of red housing indicators of late, and home prices are likely to ease further as the correction unfolds."

In London oil issues were well supported as crude prices surged above US$63 a barrel on news that 15 British sailors had been captured by Iranian forces while operating in Iraqi territorial waters.

BP rose 2.46 percent to ?5.415 while Royal Dutch Shell gained 1.71 percent to ?16.70.

But rising oil prices dampened interest in British Airways, which fell 1.52 percent to ?5.18.

In Paris oil giant Total added 1.37 percent to 51.70 euros a day after its chief executive, Christophe de Margerie, was placed under judicial investigation in connection with a probe into alleged corruption surrounding an Iranian gas deal.

Electricity utility EDF also benefited from rising oil prices, moving up 2.05 percent to 61.37 euros.

Aerospace group and Airbus parent EADS jumped 2.57 percent to 22.76 euros on closer ties between Airbus and the Russian aeronautics industry.

In Frankfurt, Volkswagen surged 6.90 percent to close at 117.70 euros on speculation that Porsche, its principal shareholder, could be preparing a public stock offering.

Elsewhere in Europe there were gains of 0.38 percent in Madrid, 0.17 percent in Zurich, 2.65 percent in Milan, 0.68 percent in Brussels and 0.95 percent in Amsterdam.
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