September 11, 2007	Tuesday	Sha'aban 28, 1428

LONDON, Sept 10: Europe’s main stock markets rebounded on Monday, regaining some lost ground after Friday’s slump caused by fears that the US economy is weakening.

The London FTSE 100 index of leading shares rose 0.27 per cent to 6,208.00 points..

Frankfurt’s DAX 30 edged up 0.03 per cent to 7,439.07 points and in Paris the CAC 40 climbed 0.16 per cent to 5,438.52.

The DJ Euro Stoxx 50 index advanced 0.17 per cent to 4,169.49 points.

The euro stood at 1.3787 dollars after touching 1.38 for the first time in a month.

Europe’s stock markets ended sharply lower Friday -- falling nearly 3.0 per cent in Paris -- after a report showing a surprise drop in US payrolls fuelled fears that the world’s biggest economy was flagging.

Wall Street shares also plunged last Friday on the first US payrolls drop in four years.

Exporter shares were particularly hard hit after the dollar slumped against the yen and other currencies.

In London early on Monday, the FTSE was being led by Smiths Group, the maker of aerospace electronics. Smiths Group jumped 2.36 per cent to 998 pence after US broker after Morgan Stanley upgraded its rating on the company to ‘equal-weight’ from ‘underweight.’

It also increased its target price to 1,100 pence from 1,000, with the broker commenting that the consensus growth forecast for some of the company’s businesses are too low.

European investors were meanwhile awaiting an informal summit in Frankfurt due Monday between German Chancellor Angela Merkel and French President Nicolas Sarkozy where French industrial policy, financial market turmoil and the outlook for Europe’s future was expected to top the agenda.

At their third informal summit since Sarkozy’s became president in May, the two European leaders are to discuss “recent developments regarding industrial mergers in France,” where the state-owned Gaz de France and private group Suez have agreed to merge, German government spokesman Thomas Steg said.

On Monday in Paris, the share price of Suez dropped 1.03 per cent to 37.53 euros.

Germany is following the GDF-Suez merger closely because it is wary of a nationalistic tendency on the part of French authorities in the defense of French corporate interests.

The merged company, GDF Suez, would be a major rival for German energy groups E.ON and RWE as the European Union energy sector pursues its consolidation.

E.ON rose 0.59 per cent to 119.61 euros in early Frankfurt trade and RWE climbed 0.30 per cent to 79.38 euros.—AFP