LONDON, Sept 27: Europe’s main stock markets rose on Thursday with the automaking sector in the driving seat after healthy gains to share prices overnight in New York and earlier in Asia.

In London, the FTSE 100 index of leading shares won 0.89 percent to 6,490.30 points in early afternoon trade.

Frankfurt’s DAX 30 gained 0.62 per cent to 7,852.30 points and in Paris the CAC 40 added 0.86 per cent to 5,739.69.

The DJ Euro Stoxx 50 index increased 0.63 per cent to 4,391.90 points.

The euro stood at $1.4157 after striking a record high $1.4166 earlier Thursday on lingering US economic concerns.

Wall Street revved higher Wednesday as General Motors reached an agreement to end a two-day-old nationwide strike, and reports about a potentially big deal in the finance sector added further support.

In European trade, German automaker BMW jumped 2.40 per cent to 47.80 euros on reports it will unveil new financial and strategic targets later Thursday.

The German group’s chairman Norbert Reithofer was to present the strategy to his supervisory board before giving a press conference later Thursday in the southern city of Munich, a source close to the matter told AFP Wednesday.

Brokers at Deutsche Bank upgraded BMW to ‘buy’ from ‘hold,’ saying it expected management to take decisions that will boost revenues and cut costs.

DaimlerChrysler shares, meanwhile, rose 1.79 per cent to 70.52 euros amid market rumours the car maker was planning to lift its earnings guidance.

In Paris, French peers Renault leapt 2.54 per cent to 102.44 euros, and Peugeot added 1.49 per cent to 57.96 euros.

Away from autos, British bank Northern Rock saw its share price jump 8.85 per cent to 198.1 pence in London.The stock was boosted after The Daily Telegraph reported that US hedge fund J.C. Flowers has been given access to the troubled lender’s accounts after making a takeover proposal.

Northern Rock had revealed on Tuesday that it has held talks with several parties about a potential sale.

In New York on Wednesday, the Dow Jones Industrial Average rose 0.72 per cent to close at 13,878.15 points and the tech-heavy Nasdaq added 0.58 per cent at 2,699.03 points.

The broad-market Standard and Poor’s 500 index climbed 0.54 per cent to 1,525.42.—AFP