Europe's main stock markets closed higher on Friday, shrugging off the double danger of the record high euro and surging oil prices.
Investor sentiment has been bolstered this week by a deep US interest rate cut, which has helped offset concerns about a global credit squeeze and problems with crisis-hit British bank Northern Rock.
Lower borrowing costs in the United States, the world's biggest economy, are regarded as beneficial to companies because they cut loan repayments and boost consumers' disposable incomes.
The London FTSE 100 index closed up 0.43 percent to 6,456.70 points, in Paris the CAC 40 rose 0.21 percent to finish at 5,700.65 points while in Frankfurt the DAX gained 0.77 percent to 7,794.43 points.
The DJ Euro STOXX 50 index gained 0.1 percent to 4,370.35 points.
European automakers revved higher on Friday after US investment bank Goldman Sachs issued upbeat analysis on the sector.
The broker lifted its rating on the sector to "attractive" from "neutral," saying the outlook on global economic growth was more positive following recent data, which should deliver stronger earnings than previously expected.
In Paris, Renault shares surged 3.31 percent to 100 euros and Peugeot added 0.98 percent to 56.77 euros.
In Frankfurt, BMW saw its share price shoot 3.37 percent higher to 43.57 euros, DaimlerChrysler won 1.80 percent to 67.99 euros, while Volkswagen added 1.07 percent to 155.67.
Meanwhile in London, troubled bank Northern Rock saw its share price claw back 4.91 percent to 194.30 pence.
Confidence in the British banking system was shaken after Britain's fifth-biggest mortgage lender Northern Rock applied for emergency funds from the Bank of England last week.
Despite Friday's slender gains, the lender's share price has fallen by about 70 percent in value since last Thursday.
Elsewhere in Europe, in Madrid the IBEX 35 gained 0.16 percent to 14,450.60 points, in Milan the SP/MIB lost 0.03 to 39,970 points, in Brussels the BEL 20 added 0.06 percent to 4,357.19 points and in Amsterdam the AEX closed 0.41 percent higher at 544.65 points.
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