European stocks increase
Sunday, 19 October 2008
LONDON, Oct 18 (Bloomberg): European stocks rose, capping the Dow Jones Stoxx 600 Index's biggest weekly gain since March 2007, as Sony Ericsson Mobile Communications Limited posted better-than-estimated earnings and money-market rates declined.
Ericsson AB added 5 per cent. Nokia Oyj rose 11 per cent as WestLB upgraded the world's biggest mobile-phone maker following declines. Royal Dutch Shell Plc and Total SA climbed more than 8 per cent as crude rebounded from a 13-month low.
Investors were whipsawed this week as governments injected $2 trillion to bail out banks amid growing signs the global economy is on the brink of a recession. The Stoxx 600 had its biggest two-day surge on record, before posting the steepest two-day slump since 1987. The cost of borrowing dollars in London fell on a weekly basis for the first time since July.
The Stoxx 600 added 3.8 per cent to 214.27 as 15 of 19 industry groups increased. The index gained 4.5 per cent this week, the first weekly advance since September 12.
Stocks pared some of their gains after a report showed housing starts in the US fell more than forecast last month and construction of single-family homes plunged to the lowest level in a quarter century.
National benchmark indexes increased in 14 of the 18 western European markets. The UK's FTSE 100 added 5.2 per cent, and France's CAC 40 rose 4.7 per cent. Germany's DAX gained 3.4 per cent.
The London interbank offered rate, or Libor, for three- month loans in dollars dropped for a fifth day, sliding 8 basis points, or 0.08 percentage point, to 4.42 per cent, the British Bankers' Association said. It declined 40 basis points this week.
Ericsson AB added 5 per cent. Nokia Oyj rose 11 per cent as WestLB upgraded the world's biggest mobile-phone maker following declines. Royal Dutch Shell Plc and Total SA climbed more than 8 per cent as crude rebounded from a 13-month low.
Investors were whipsawed this week as governments injected $2 trillion to bail out banks amid growing signs the global economy is on the brink of a recession. The Stoxx 600 had its biggest two-day surge on record, before posting the steepest two-day slump since 1987. The cost of borrowing dollars in London fell on a weekly basis for the first time since July.
The Stoxx 600 added 3.8 per cent to 214.27 as 15 of 19 industry groups increased. The index gained 4.5 per cent this week, the first weekly advance since September 12.
Stocks pared some of their gains after a report showed housing starts in the US fell more than forecast last month and construction of single-family homes plunged to the lowest level in a quarter century.
National benchmark indexes increased in 14 of the 18 western European markets. The UK's FTSE 100 added 5.2 per cent, and France's CAC 40 rose 4.7 per cent. Germany's DAX gained 3.4 per cent.
The London interbank offered rate, or Libor, for three- month loans in dollars dropped for a fifth day, sliding 8 basis points, or 0.08 percentage point, to 4.42 per cent, the British Bankers' Association said. It declined 40 basis points this week.