August 03, 2006	Thursday	Rajab 7, 1427

LONDON, Aug 2: European stock markets marched upwards on Wednesday, with investors absorbing a flurry of strong company results, and before this week's interest rate decisions, dealers said.

Crucial rate announcements were awaited from the European Central Bank and Bank of England on Thursday.

In trading on Wednesday, London's FTSE 100 index of leading shares rose 0.39 per cent to 5,903.90 points, Frankfurt's DAX 30 index gained 0.73 per cent to 5,637.55 points and the Paris CAC 40 climbed 0.91 per cent to 4,993.36.

The DJ Euro Stoxx 50 index of leading eurozone shares increased 0.76 per cent to 3,668.35 points.

The euro stood at $1.2803.

Wall Street shares had closed lower on Tuesday after a government report revealed a strong spike in inflation, fueling speculation the Federal Reserve will move to hike interest rates again next week.

Japanese share prices ended with modest gains Wednesday, reversing early losses as investors managed to set aside concerns about the prospects of higher US interest rates, dealers said.

All leading European shares indices made large gains last week on strong company results news -- and the trend continued on Wednesday.

In Paris, shares in Danone leapt 2.98 per cent to 103.7 euros after the French dairy giant revealed exceptional organic sales growth in the first half of its financial year.

BNP Paribas shares surged 2.0 per cent to 76.55 euros as the French bank said net profit surged 30.6 per cent in the second quarter to 1.9 billion euros ($2.4 billion) compared with the same period last year. That beat analysts consensus forecasts of about 1.75 billion euros.

Shares in French construction materials giant Lafarge jumped 2.08 per cent to 95.5 euros. The group posted a 53.0-per cent jump in net first-half profit to 548 million euros.

Sanofi-Aventis shares eased 0.14 per cent to 73.35 euros, despite the pharmaceuticals group revealing a higher-than-expected increase in second-quarter net profit and raising its full-year earnings forecast.

However, the British confectionery and soft drinks giant also warned it would take a big hit from its recent salmonella scare.

Meanwhile shares in Lloyds TSB were hit by profit-taking after Britain's fifth-biggest bank posted a modest 1.8 per cent increase in first-half net profits, aided by strong insurance sales and tight cost controls.

In US trading on Tuesday, the Dow Jones Industrial Average closed down 0.54 per cent at 11,125.73 points while the technology-rich Nasdaq index finished 1.41 per cent lower at 2,061.99 points.

The broad-market Standard and Poor's 500 ended down 0.45 per cent at 1,270.92 points.—AFP