European stock markets extend rise

LONDON, Aug 15 (AFP): European stock markets rose solidly on Friday, building on gains from the previous day as tensions appeared to ease over the Russia-Ukraine crisis, while the euro advanced versus the dollar.
London's benchmark FTSE 100 index climbed 0.70 per cent to stand at 6,732.35 points in late morning deals.
Frankfurt's DAX 30 index climbed 0.71 per cent to 9,290.97 points and in Paris the CAC 40 advanced by 0.71 per cent to stand at 4,235.20 compared with Thursday's close.
Indices were rising after Russian President Vladimir Putin said that Moscow should not "fence itself off from the outside world" despite a plunge in East-West relations over the pro-Kremlin insurgency in Ukraine.
"The market seems to have come to terms with geopolitics almost being the 'new normal', although comments from Russian President Vladimir Putin have given some confidence for traders," noted Chris Weston, market strategist at IG trading group.
In foreign exchange trade Friday, the euro rose to $1.3388 from $1.3365 late on Thursday in New York.
The European single currency climbed to 80.19 pence from 80.09 pence on Thursday, while the pound grew to $1.6696 from $1.6686.
Britain's economy expanded by 0.8 per cent in the second quarter of 2014 compared with output in the first three months of the year, official data showed on Friday.
Gross domestic product had also expanded by 0.8 per cent during the first quarter of the year, the Office for National Statistics said in a statement, confirming initial estimates provided last month.
GDP grew by 3.2 per cent in the April-June period compared with the second quarter of 2013, slightly up on the initial estimate of 3.1 per cent.
At 0.8 per cent quarter-on-quarter, Britain's economy overtook the size it achieved before the global financial crisis of 2008.
While Britain's economy shows signs of solid recovery, growth in the 18-country eurozone ground to a halt in the second quarter, official data showed on Thursday, dragged down by France and Germany and casting a cloud over the crisis-hit region.
European stock markets had risen on Thursday as data fuelled speculation that the European Central Bank would be forced to roll out stimulus measures.
"Bad news has resumed its position as the familiar rather than the rare story," said Capital Spreads dealer Jonathan Sudaria.
"Fears of a European recession and deflationary slump have been welcomed by markets" because of the prospect of a new ECB stimulus programme.
Elsewhere, Asian stock markets closed higher on Friday, tracking Wall Street gains overnight, as traders shrugged off news of a rise in initial claims for US unemployment insurance benefits.
On the London Bullion Market, the price of gold edged up to $1,314.60 an ounce from $1,313.50 on Thursday.