European markets ride higher
August 23, 2007 - 0:0
LONDON (AFP) -- Europe's main stock markets rose strongly in morning trade on Wednesday, with mining, financial, and auto shares leading the way in London, Frankfurt, and Paris.
European indices shrugged off an end to a two-day rally for Japanese shares and a mixed finish on Wall Street overnight, but nervousness remained about problems in global credit markets.""The credit worries have quietened down for the time being, however we are concerned about the low volume and if any bad news comes in we could see the market come back down,"" Trade Index dealer Manoj Ladwa said in reference to the performance by London's FTSE on Wednesday.
In late morning trade, London's FTSE 100 index of leading shares jumped 0.97 percent to 6,144.90 points. Frankfurt's DAX 30 gained 0.86 percent to 7,488.50 points, and in Paris, the CAC 40 surged 1.36 percent to 5,492.62.
The DJ Euro STOXX 50 index of eurozone shares advanced 1.05 percent to 4,218.76 points.
The euro stood at 1.3488 dollars.
In London, mining shares surged on the back of record earnings from BHP Billiton and rising metals prices.
BHP Billiton, the world's largest miner, soared 3.23 percent to 1,343 pence after Wednesday posting record annual net profit of 13.42 billion US dollars (9.95 billion euros) and delivering an upbeat outlook on the back of strong demand from China.
The company added that the global economy remains robust and that it did not expect current volatility in world credit markets to impact on demand for raw materials.
BHP's peers rallied on the news, with Antofagasta rocketing 3.98 percent to 680 pence and Xstrata up 3.27 percent at 2,845 pence.
Financials also staged a recovery as credit crunch fears eased in Europe.
Hedge fund giant Man Group jumped 3.88 percent to 475.75 pence and home-loan provider Northern Rock advanced 3.56 percent to 727 pence in London, while in Paris the French bank Societe Generale won 2.43 percent to 120.77 euros.
In Frankfurt, automaker DaimlerChrysler sped 3.35 percent higher to 62.65 euros after a report said the group intended to make an announcement on August 29 about it plans for the cash it will earn from the sale of an 80-percent stake in Chrysler.
Analysts have said there is a good chance that the cash of around 10 billion euros will be used to fund either a special dividend or a stock buy-back program.
In Paris, French car giant Renault rallied 3.62 percent to 97.7 euros