LONDON, Nov 7: Europe’s main stock markets extended gains in morning trade on Wednesday as investors tracked fresh record highs for oil prices and the euro. London’s FTSE 100 index of leading companies climbed by 0.34 per cent to 6,496.90 points and in Frankfurt the DAX 30 rose 0.20 per cent to 7,842.91.
In Paris the CAC 40 gained 0.59 per cent to 5,742.90 points. The DJ Euro Stoxx 50 index of top eurozone shares advanced by 0.23 per cent to 4,417.30.
The European single currency stood at 1.4694 dollars after hitting a record high 1.4704 on Wednesday. A strong euro hurts exporters whose goods are priced in the common currency.
Dealers were also keeping a close watch over the oil market amid record-breaking runs higher for crude prices.
Oil prices surged to record highs above $98 per barrel on Wednesday.
High oil prices lift energy costs and erode company profits, while also sparking fears of slower global economic growth. However they benefit oil companies, which see their profits soar.
Metals prices were also rising strongly on Wednesday, which in turn lifted the value of shares in mining groups. Among the biggest gainers in European stock market trading Wednesday were oil and mining majors.
In London, Anglo-Australian mining giant Rio Tinto won 4.13 per cent to 4,513 pence and peer Anglo American gained 2.35 per cent to 3,226 pence. French oil group Total climbed by 3.33 per cent to 56.43 euros in Paris.
However, British Energy slumped 7.21 per cent to 515 pence in London after the group said it has found further wire corrosion in reactors it had been forced to shut last month.
Elsewhere in European stock market trading, banking shares rallied after enduring heavy price losses in recent days. In Paris, Societe Generale rose 1.53 per cent to 108.03 euros, while Commerzbank increased by 1.02 per cent to 27.74 euros in Frankfurt.
Financials had slid on Monday and Tuesday as subprime-weary investors were spooked by news that Citigroup, the biggest US bank, expected losses of up to 11 billion dollars (7.6 billion euros) related to problems in the US subprime mortgage sector.
Investors are worried about the true extent of the global financial sector’s exposure to the troubled US housing market, which is now feeling the heat of home loans made to high-risk American borrowers.—AFP
