LONDON: European stock markets rose solidly yesterday as traders looked ahead to a key US Federal Reserve meeting due mid-week while keeping an eye over the G8 summit in Northern Ireland.
London’s FTSE 100 index of leading shares climbed 0.35 percent to end at 6,330.49 points, Frankfurt’s DAX 30 index jumped 1.08 percent to 8,215.73 points, and in Paris the CAC 40 soared 1.54 percent to finish at 3,863.66 points. Madrid’s IBEX 35 index gained 0.81 percent and Milan rose 0.26 percent.
Asian markets traded mixed, even as a weak batch of US economic data provided hope that the Federal Reserve would put off announcing any winding down of its vast stimulus scheme.
US stocks moved up with the Dow Jones Industrial Average leaping 1.06 percent to 15,229.38 points in midday trade. The broad-based S&P 500 advanced 1.01 percent to 1,643.23 points, while the Nasdaq Composite added 3,462.27 points.
In foreign exchange deals, the European single currency dipped to $1.3336 from $1.3340 late in New York on Friday. The dollar increased to 94.92 yen from 94.08 yen on Friday. On the London Bullion Market, the price of gold fell to $1,384.75 an ounce from $1,391.25 on Friday.
On the corporate front, in Britain, The Co-operative Bank yesterday said it was planning to increase its capital cushion by £1.5bn ($2.4bn) to secure its future but without resorting to state aid. The bank said it would raise the new capital by issuing shares and bonds in exchange for existing debt, as well as from selling assets.
AFP
