European stocks rally
Tuesday, 30 October 2007
LONDON, Oct 29 (AFP): Europe's main stock markets sprang higher Monday, even as the euro and oil prices soared to new highs.
"The markets have been remarkably resilient," said Mike Lenhoff, strategist at stockbrokers Brewin Dolphin.
London's FTSE 100 index of leading shares rose by 0.39 per cent to 6,687.60 points in morning trade, while Frankfurt's DAX 30 won 0.62 per cent to 7,998.49 points and in Paris the CAC 40 advanced 0.61 per cent to 5,830.21.
The DJ Euro Stoxx 50 index of top eurozone shares gained 0.62 per cent to reach 4,467.66 points.
The European single currency stood at 1.4417 dollars after striking a fresh record high of 1.4438 dollars earlier Monday ahead of an expected cut in US interest rates.
Traders are expecting the Fed to reduce its key rate by a quarter of a point at a meeting Wednesday, making the dollar less attractive to investors. But at the same time a strong euro makes eurozone exports more expensive for buyers purchasing in dollars. "The main story at the moment is the Fed's meeting ... and people are factoring in another rate cut," Lenhoff said.
Elsewhere Monday, crude futures rose past 93 dollars per barrel for the first time owing to fears of further disruption to global energy supplies.
Soaring oil prices hurt companies as they increase running costs. Yet they benefit energy groups, who see their incomes surge.
In London stock market trading Monday, British oil giant BP won 0.64 per cent to 633 pence. French rival Total rose 1.77 per cent to 56.34 euros in late Paris morning trade.
"The markets have been remarkably resilient," said Mike Lenhoff, strategist at stockbrokers Brewin Dolphin.
London's FTSE 100 index of leading shares rose by 0.39 per cent to 6,687.60 points in morning trade, while Frankfurt's DAX 30 won 0.62 per cent to 7,998.49 points and in Paris the CAC 40 advanced 0.61 per cent to 5,830.21.
The DJ Euro Stoxx 50 index of top eurozone shares gained 0.62 per cent to reach 4,467.66 points.
The European single currency stood at 1.4417 dollars after striking a fresh record high of 1.4438 dollars earlier Monday ahead of an expected cut in US interest rates.
Traders are expecting the Fed to reduce its key rate by a quarter of a point at a meeting Wednesday, making the dollar less attractive to investors. But at the same time a strong euro makes eurozone exports more expensive for buyers purchasing in dollars. "The main story at the moment is the Fed's meeting ... and people are factoring in another rate cut," Lenhoff said.
Elsewhere Monday, crude futures rose past 93 dollars per barrel for the first time owing to fears of further disruption to global energy supplies.
Soaring oil prices hurt companies as they increase running costs. Yet they benefit energy groups, who see their incomes surge.
In London stock market trading Monday, British oil giant BP won 0.64 per cent to 633 pence. French rival Total rose 1.77 per cent to 56.34 euros in late Paris morning trade.