European equities took off in afternoon trading as the day's US economic data calmed fears of higher inflation and aggressive increases in US interest rates.
The FTSE Eurobloc 100 index put on 22.33 to 1,107.07 and the FTSE Eurotop 100 index gained 53.95. The FTSE Eurotop 300 index rose 21.00 to 1,318.28.
Banking stocks led the way in Paris with financial shares seen to benefit from the lower inflationary outlook. BNP was one of the biggest gainers, up €3.65 to €80.65, a rise of close to 6 per cent. Analysts said the bank owed most of its progress to its impending inclusion in the Eurostoxx-50 index, forcing tracker funds to increase their investment. Telecommunications companies also benefited from market sentiment.
Frankfurt pushed 2.1 per cent higher as the financials, motors and telecoms put in strong showings. Among financials, Dresdner Bank gained €1.55 to €47.50, helped by a Merrill Lynch upgrade. HypoVereinsbank was 30 cents higher at €61.50 as Credit Lyonnais upgraded its rating on the stock, saying that the bank's boardroom shakeup had helped clear the way for internal merger progress.
Deutsche Telecom put on €1.19 to €44.09, in spite of a larger than expected decline in nine-month net profits. Mannesmann was €3.50 higher at €148.50. Both companies were buoyed by news that the German telecommunications authority had awarded them five additional mobile phone frequencies each. Linde shot up €2.70 to €49.70, extending Wednesday's rebound after the share's slide earlier in the month during its capital increase.
Zurich pulled ahead, led up by strong advances in financials after the solid overnight showing in US banks and insurers. UBS put on 29 Swiss francs or 4.7 per cent at SFr425 (€265.14) while CS Group was SFr13.50 ahead at SFr290.50 (€181.23).
Amsterdam stocks rose on firmer bonds even before the strident start to trading on Wall Street. The AEX index finished up 15.75 at a session high of 568.14.
