LONDON, Nov 28: Europe’s main stock markets rose strongly Wednesday on positive earnings news and following a sharp rebound on Wall Street overnight, dealers said. London’s FTSE 100 index of leading companies jumped 0.87 per cent to 6,194.00 points in early afternoon trade. In Frankfurt the DAX 30 was up 1.23 per cent to 7,623.75 points and in Paris the CAC 40 gained 0.93 per cent to 5,485.34 points.
The DJ Euro Stoxx 50 index of top eurozone shares rallied 0.99 per cent to 4,266.18 points.
The European single currency stood at 1.4731 dollars.
Computer business-software group Sage led the London gains after posting a rise in annual pre-tax profits thanks in part to improved growth in the United States.
Britain-based Sage jumped 9.19 per cent to 211.5 pence after also saying that its new financial year had started well.
Another big riser in London was Compass, the world’s biggest caterer.
Compass shares soared 7.87 per cent to 312 pence after the group revealed that its annual net profit had jumped 81 per cent to 515 million pounds (721 million euros, 1.06 billion dollars).The big gain in profits came as Compass refocused on its core contract catering business following financial difficulties for the company in 2005.
Meanwhile the banking sector performed well in Paris as dealers bought back the sector after recent heavy losses on concerns over the fallout from the US subprime home loan crisis. Societe General climbed 3.30 per cent to 101.1 euros and BNP Paribas rallied 2.95 per cent to 73.91 euros.
One Paris dealer cautioned, however, that the rebound was likely to be short-lived.
I’d say we haven’t seen the worst in European markets. The slightest bit of negative news, particularly in the banking sector, could spark a sharp fall.In Frankfurt the world’s biggest industrial gas group Linde led the DAX, jumping 4.15 per cent to 87.56 euros following a broker upgrade.
Citigroup said Linde offered a defensive investment option amid downside risks and increased volatility in equity markets.
Wall Street rebounded strongly Tuesday after US banking giant Citigroup said it would gain a $7.5-billion injection from a state-run United Arab Emirates investment fund.
Citigroup has seen its finances plagued by the US housing slump and a related credit squeeze in recent months.—AFP