European bourses responded to the "no change" signal on interest rates from the European Central Bank with a broad-based rally. The FTSE Eurobloc index rose 0.6 per cent to 1,092.34 and the FTSE Eurotop 100 index added 0.8 per cent at 2,994.77. The FTSE Eurotop 300 index ended 0.8 per cent better at 1,312.56.
Frankfurt had another firm session, adding 65.99 at 5,419.31 on the Xetra DAX index for a four-day gain of 5.8 per cent. News from the broad economy remained upbeat - August industrial production rose 1.1 per cent - and the stay-as-you-are policy decision on rates by the ECB also underpinned sentiment. Allianz rose €9.50 at €292.90 as investors warmed to the news of a move into the US. Telecoms consolidation talk continued to underpin Deutsche Telekom, which added €1.20 at €41.90. Paris also pushed ahead for the fourth successive session, adding 50.54 at 4,742.26 on the CAC 40 index. Market heavyweights were in demand. A 31 per cent improvement in third-quarter sales sent luxury goods leader LVMH up €10.60 at €299 in good volumes. France Telecom gained €2.05 at €87.95 and TotalFina, brushing aside negative sector comment from Deutsche Bank, improved €2.20 at €117.3.
Amsterdam managed to stay in positive territory in spite of a shakeout for financials. The AEX index added 1.29 at 555.77. Among industrials, steel leader Hoogovens was a firm feature, adding €2.35 at €57.85. Financials turned lower, not helped by the latest inflation data that proved stubbornly high in September. ABN-Amro shed 24 cents at €21.60, and Aegon came off 95 cents at €80.85.
Stockholm was higher as strength in Electrolux and the pharmaceuticals sector added to optimism ahead of the third-quarter reporting season and some more positive forecasts for growth stocks. The general index finished 32.10 higher at 3,918.86.
Household appliance maker Electrolux B shares jumped 11.50 Swedish krone (€1.32) or 7.5 per cent to SKr166 (€19.06) after announcing it was setting up a joint venture with telecoms group Ericsson to develop home networking products. Ericsson was SKr1 (11 cents) higher at SKr265 (€30.43).
