LONDON, July 20: European stock markets rose on Thursday because investors were reassured by signs that a cycle of rising US interest rates might be flattening out, dealers said.
Federal Reserve chairman Ben Bernanke's comments on moderating growth and inflation, made on Wednesday, raised hopes for a less aggressive monetary stance by the US central bank, calming investor jitters over economic growth.
London's FTSE 100 index of leading shares gained 0.50 per cent to 5,806.70 points in morning deals, Frankfurt's DAX 30 index added 0.56 per cent to 5,570.04 points and the Paris CAC 40 increased 0.78 per cent to 4,884.35.
The DJ Euro Stoxx 50 index of leading eurozone shares gained 0.59 per cent to 3,606.91 points.
The euro stood at $1.2603.
US stocks had powered higher on Wednesday as the market shrugged off concerns over violence in the Middle East, to focus on Bernanke's subtle hints that the market's worst fears on monetary policy would not come to pass.
Mining stocks continued to underpin blue chip gains in London in the wake of Bernanke's comments.
The threat of further US rate increases has hung over the mining sector in recent weeks on fears demand for metals could be hit.
Anglo-Swiss group Xstrata was the sector's top performer, up 3.94 per cent at 2,084 pence.
The stock was further lifted by growing expectations it was set to win the battle for Canadian nickel miner Falconbridge after Inco last night effectively ruled out making another offer. Xstrata had Wednesday raised its cash bid.
Peer Anglo American rose 1.33 per cent to 2,216 pence and BHP Billiton gained 1.25 per cent to 1,054 pence.
In US trading on Wednesday, the Dow Jones Industrial Average leapt 1.96 per cent to 11,011.42 points and the Nasdaq vaulted 1.83 per cent to 2,080.71 points.
The broad-market Standard and Poor's 500 index lifted 1.86 per cent to 1,259.81 points.
Bernanke, delivering the central bank's semiannual economic report to Congress, said policymakers would be on guard against inflation but suggested that a moderating eco-
nomy would ease price pressures.—AFP