European stock markets rally in initial trading

LONDON, Oct 17 (AFP): European stock markets rose at the start of trading on Friday, the end of an immensely volatile week for shares as investors fear a return to recession in the eurozone.

London's benchmark FTSE 100 index of top companies gained 0.29 per cent to open at 6,214.05 points compared with Thursday's closing level.

Frankfurt's DAX 30 index climbed 0.54 per cent to 8,629.16 points and the CAC 40 in Paris advanced 0.40 per cent to 3,934.19.

In Athens where shares had fallen heavily this week, stocks rallied by 2.43 per cent to 890.27 points on the Athex index.

But the yield on Greek 10-year bonds continued to rise, reaching 9.28 per cent at one point in morning trading.

European stock markets had recorded intra-day losses of 2.0-3.0 per cent on Thursday before pulling back late in the session, leaving Frankfurt to end with a modest gain.

Investors had been gripped by panic after weak eurozone inflation data, poor demand at a Spanish bond auction and concern that Greece could be set for a fresh financial crisis when it exits its bailout plan.

"Financial markets have endured some brutal swings in price action over the past few days, as uncertainty has built up over the outlook for global growth," said Michael Hewson, chief market analyst at traders CMC Markets UK.