European stock markets rally in initial trading

LONDON: 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 percent to open at 6,214.05 points compared with Thursday’s closing level.

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

European stock markets had recorded intra-day losses of 2.0-3.0  percent 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.

“What the recent volatility does illustrate though is how unsure invetors have become after what had been pretty much a one way bet on stocks for the last five years.”

Source: APP