LONDON, Feb 13: European stock markets rose on Monday, with auto shares leading the pack on positive sentiment for the car sector. London’s FTSE 100 index of leading shares gained 0.24 per cent to 5,778.00 points in early afternoon deals, Frankfurt’s DAX 30 climbed 0.28 per cent to 5,717.63 points and in Paris the CAC 40 won 0.31 per cent to 4,925.85 points.

The DJ Euro Stoxx 50 index of leading eurozone shares advanced by 0.15 per cent to 3,701.26 points.

The euro stood at 1.1887 dollars.

US stocks had posted modest gains on Friday as the market reacted to a fresh decline in crude oil futures while shrugging off a weak trade report and jitters over the bond market, dealers said.

On Monday, Japanese share prices fell heavily, closing below the symbolic 16,000-points level for the first time in more than two weeks as many foreign buyers continued to stay away, dealers said.

In Paris on Monday, Renault shares surged by 4.08 per cent to 82.90 euros, benefiting from interest generated by chief executive Carlos Ghosn, who announced his three-year strategy for the group last week.

Renault continues to gain thanks to the ‘Carlos Ghosn’ effect as expected, said a trader in Paris who asked not to be identified.

The price of Renault shares has increased by 7.8 per cent in the last five days while the CAC 40 index of leading French shares has fallen 0.35 per cent.

Ghosn announced his plan for Renault last Thursday, saying that the group would launch new models to promote growth in sales while sharply reducing its operating costs.

Another trader said that results from German car group Volkswagen last week had also boosted the European auto sector.

In Frankfurt on Monday Volkswagen jumped 2.36 per cent to 56.71 euros, while rivals DaimlerChrysler won 2.69 per cent to 49.33 euros and BMW gained 2.42 per cent to 40.55 euros.

The sector seems to be in a new phase of growth and investors are repositioning themselves for the auto industry, the trader said.

Volkswagen last week unveiled new profit in 2005 of 1.12 billion euros ($1.33 billion), an increase of 60.7 per cent compared with 2004, and said it would cut a maximum 20,000 jobs in the next three years.

In London on Monday, brewer Scottish and Newcastle was among the biggest risers, gaining 2.75 per cent to 514 pence after US broker Merrill Lynch hiked its rating of the stock to ‘buy’ from ‘neutral’ in a bullish review of the European brewing sector.

In New York on Friday, the Dow Jones Industrial Average shook off a weak start to close up 0.33 per cent to close at 10,919.05 points. The tech-heavy Nasdaq composite added 0.27 per cent to 2,261.99 points and the broad-market Standard and Poor’s 500 index rose 0.25 per cent to 1,266.99.

In Asia on Monday, Tokyo’s benchmark Nikkei-225 index tumbled 2.34 per cent to close at 15,877.66 points, the first breach below 16,000 points since January 26.

Hong Kong’s key Hang Seng Index ended down 0.74 per cent at 15,312.09 points.—AFP