The London stock market's FTSE Index resumed its forward momentum yesterday, holding gains of more than 1 per cent on its last full day of trade this year.
Other European bourses rose modestly after languishing around their Monday levels through the morning. Paris stocks ended 0.4 per cent higher while Frankfurt rose 0.3 per cent.
European foreign exchange trading was almost at a standstill, awaiting the arrival of the euro.
"There are very few client calls and everything is getting ready for the euro," said Mr Jesper Dannesboe, economist at ABN AMRO.
The FTSE 100 index roared up more than 100 points in early trading and held a gain of 60-70 points for most of the day, ending almost 1.3 per cent higher at a fresh five-month high.
But dealing activity was subdued throughout the session as many fund management groups and brokerages had employed minimal staff during the shortened pre-New Year holiday week.
"It is the time of year when a lot of institutions are interested in getting share prices up, so they can improve the performance of their portfolios," commented a senior sales trader at a leading European investment bank.
