Sun, Oct 07, 2007 - Page 10 News List

Positive news from the US boosts stock markets in Europe

AFP , PARIS

European stocks got a boost on Friday from a strong US job creation report for last month, which dampened fears that the world's largest economy could be headed toward recession.

In London the FTSE 100 index gained 0.73 percent to finish at 6,595.80, while in Paris the CAC 40 rose 0.67 percent to reach 5,843.24 and in Frankfurt the DAX added 0.72 percent to end the day at 8,002.18.

The Euro STOXX 50 index of top eurozone shares advanced by 0.79 percent to 4,455.31.

The euro stood at US$1.4152, after hitting a record high US$1.4283 earlier in the week.

Across the Atlantic US stock markets forged higher on Friday after the government revealed job growth strengthened last month, easing worries the economy could be facing a potential recession.

Stocks rose after the Labor Department said US employers added 110,000 jobs last month. The government also revised August's job reading to show a gain in non-farm payrolls compared with an initial estimate that job growth declined.

The report lifted investors' spirits and raised hopes that the economy is weathering a credit crunch and widespread housing downturn.

In London mining stocks gained on the news with Anglo American gaining 2.92 percent to £33.43, BHP Billiton 2.53 percent to ?17.45, Kazakhmys 4.59 percent to £15.96 and Rio Tinto 2.88 percent to £42.50.

In Paris, EADS rose 1.37 percent to 22.27 euros as the company attempts to shrug off accusations of improper deals.

Newly installed Airbus chief executive Thomas Enders on Friday denied insider trading in shares of the planemaker's parent company EADS, according to an internal memo seen by reporters.

"To be clear with you all, I never committed any insider trading and I have not been accused of insider trading by anyone, including by the [French] Financial Markets Authority [AMF]," he wrote in the memo addressed to all Airbus staff.

"I categorically reject the allegations and insinuations in the press," Enders said.

Reports by Le Figaro newspaper and a knowledgeable source have said that around 20 EADS executives and shareholders are under suspicion of having sold their stakes in the company knowing that it was about to disclose big problems at Airbus.

Elsewhere in Europe, in Amsterdam the AEX closed 0.90 percent higher at 546.6 points, in Milan the SP/MIB rose 0.55 percent to 40,800 points, while the Swiss SMI grew 0.24 percent to 9,075.35 points.

In Madrid, the IBEX-35 gained 1.18 percent to 14,892.10 points and the Belgian BEL 20 added 0.57 percent to finish at 4,460.29 points.

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