LONDON, May 25: European stock markets gained slightly on Thursday trading after diving lower the previous day over concerns that creeping inflation would lead to higher interest rates.

London’s FTSE 100 index of leading shares rose 0.25 per cent to 5,601.30 points, Frankfurt’s DAX 30 climbed 0.47 per cent to 5,613.48 points and in Paris the CAC 40 index won 0.12 per cent to 4,875.91.

The DJ Euro Stoxx 50 index of leading eurozone shares increased also 0.12 per cent to 3,579.24 points.

The euro stood at 1.2795 dollars.

The FTSE and DAX had closed down 1.61 per cent and the CAC 1.25 per cent lower on Wednesday over lingering concerns that creeping inflation would lead to higher interest rates, particularly in the United States.

World stock markets have tumbled sharply over the past two weeks, in some cases erasing all of their 2006 gains, which were won largely on the back of strong company earnings and takeover news.

Prior to plunging, global stock markets had struck multi-year high points during the first half of this year.—AFP