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reaching a 10- month high, after a positive outlook for the US
economy and data showing an end to recession in Germany and France.
London's benchmark FTSE 100 index of leading shares rose 1.11
percent to 4 , 768.97 points approaching midday in the British
capital. It was the highest level since early October. Frankfurt's
DAX 30 gained 1.42 percent to 5 ,426. 29 points and in Paris the
CAC 40 added 0.97 percent to 3 , 541.24. The DJ Euro Stoxx 50 index
of leading eurozone shares won 1.13 percent to 2 , 718.52 points.
On the foreign exchange market, the European single currency jumped
to 1.4247 dollars. "The European markets are playing catch up to
the US today after a good rally in the US markets last night
following a positive message about the economy from the Fed," said
Joshua Raymond, market strategist at City Index. "The FTSE 100 has
now reached a new ten month high and it seems this upward momentum
has no end in sight just yet." US stocks rallied on Wednesday, buoyed
by comments from the Federal Reserve that the recession-mired US
economy is stabilising as it announced a scaleback in its massive
pump priming effort. The Dow Jones Industrial Average gained 1.30
percent to finish at 9 , 361.61 points. On Thursday, official EU data
showed the economy of the 16 nations using the euro contracted by
just 0.1 percent in the second quarter. The figures, which are
initial estimates, fuelled hopes that the eurozone's biggest hitters
can pull the others out of the worst recession the region has known
since 1945. Germany, the biggest eurozone economy, and France both
surprised on Thursday with GDP ( gross domestic product) growth of 0.3
percent in the second quarter, confounding official forecasts of
continued contraction. Investors on Thursday also digested more
earnings news from the European insurance sector. In London, the
share price of Prudential soared 7.46 percent to 514 pence after
the biggest British insurer said it was hiking its half-year
dividend by five percent thanks to stronger capital reserves.
Prudential added that its net losses more than doubled in the first
half on costs linked to the sale of Taiwanese operations. However its
operating profit rose six percent, helped by strong sales growth of
its products in the United States. Dutch insurer Aegon slumped 6.84
percent to 5. 325 euros after the group reported a second- quarter
loss of 161 million euros (229 million dollars) and said it would
issue up to one billion euros in shares to repay part of a state
investment. Earlier in Asian trading, Tokyo's benchmark Nikkei-225
index closed up 0.79 percent to 10 , 517.19 points on Thursday,
lifted by the overnight rally on Wall Street, traders said.
