European shares rise on US hopes
Banks, technology and commodity stocks got European stock markets off to a punchy start on Friday, as a speedy agreement on a US economic stimulus package helped lift shares worldwide.
At 0924 GMT, the FTSEurofirst 300 index of top European shares was up 1.1 per cent at 1,345.15 points, adding to a 5.4-per cent leap on Thursday, and tracking sharp gains in Asia.
Banks and oil shares were the top weighted sectors. Standard Chartered rose 2.4 per cent and Commerzbank 2.3 per cent, while BP rose 1.7 per cent as the oil price breached $90 a barrel.
A 2-per cent rise in copper futures lifted stock in miners, with Kazakhmys, Vedanta and Antofagasta up between 3 and 6 per cent.
French bank Société Générale rose 2.5 per cent a day after stunning markets by disclosing a trader fraud that lost it $7.15 billion.
Shares in brewer Heineken rose 1.7 per cent after it and partner Carlsberg agreed a joint cash bid for Scottish and Newcastle, which was up 2 per cent. Carlsberg was up 0.2 per cent.
Global stocks rose after the US Congress and the White House agreed the outlines of a stimulus package that would give 117 million US families a tax rebate. The agreement came less that a week after President George Bush said a proposal was in the works.
Analysts said there were plenty of positives emerging from the United States but expected share volatility in the short term.
"We expect sharp gains and losses in the next few days and weeks," said Heinz-Gerd Sonnenschein, strategist at Postbank in Germany.
"The US has done many things to stabilise the market such as the Fed rate cut, the stimulus package and help for monoline insurers, but all the bad news is not yet out there."
Britain's FTSE was up 1.1 per cent, Germany's DAX up 2.2 per cent and France's CAC up 1.3 per cent.
Follow Emirates 24|7 on Google News.