Euro marts defy nuke fears

LONDON: European equities advanced yesterday after Tokyo and New York markets shrugged off investor concerns over North Korea??™s first atom bomb test.

The London FTSE 100 index of leading shares gained 0.69% to close at 6,072.70 points. In Paris the CAC 40 rose 0.47% to 5,309.79 while in Frankfurt the DAX added 0.55% to finish at 6,117.71. The DJ Euro Stoxx 50 index of leading eurozone shares closed up 0.54% at 3,960.67.

In New York, US stocks reversed earlier losses and posted slight gains early yesterday as investors awaited the start of the third-quarter corporate earnings season.

The Dow Jones Industrial Average was up 0.04% at 11,863.09 while the tech-rich Nasdaq was 0.15% higher at 2,315.15 in morning trade. The broad-market Standard & Poor??™s 500 index was up 0.12% at 1,352.34.

In London, ongoing merger and acquisition speculation supported gains across the market.

Man Group topped the blue chip gainers board, up 8.21% to 478 pence after a press report said the hedge fund was being stalked by US investment bank Goldman Sachs. Among Man Group??™s peers Amvescap ??“ also linked to a possible Goldman bid by some traders ??“ took on 5.36% at 629 pence, while Schroders firmed 4.20% to 1,004.5 pence as sector consolidation hopes spread.

In Paris, the benchmark CAC 40 index was within striking distance of a five-year high.

Steel giant Arcelor-Mittal added to its recent string of gains, climbing 2.7% to 29.87 euros on rumours of a takeover bid for British steel group Corus.

EADS was the star performer of the day, bouncing 3.6% to 20.89 euros after the heavy selling over the past few days, as uncertainty over the future management structure at its Airbus unit ended with the resignation of CEO Christian Streiff, who was replaced by EADS co-CEO Louis Gallois.

In Frankfurt, Commerzbank led blue-chips higher, adding 2.34% to 27.12 euros.

Deutsche Boerse, the operator of the Frankfurt stock exchange, gained 1.94% to 129.70 euros. Brokers pointed to a report published October 7 in the Wall Street Journal that said Deutsche Boerse and the Chicago Mercantile Exchange were considering a merger.

Elsewhere in Europe, in Madrid the Ibex-35 hit a fresh record high at 13,234.5 points after a rise of 0.69%.

In Amsterdam the AEX closed up 0.53% at 489.80 points, in Milan the Sp/Mib climbed 0.62% to 39,323 points, the Brussels Bel 20 went up 0.52% to 4,124.64 points and the Swiss SMI index rose 0.92% to close at 8,627.2 points.

The dollar inched up against the euro. The single European currency in late-day trade was at $1.2537 after $1.2600 late on Monday in New York.

The dollar at one point rose to ??119.78, its best showing since December 14, 2005, after 119.09 on Monday.

The pound was being traded at $1.8544 from $1.8672 on Monday.

On the London Bullion Market, gold prices fell to $571.40 per ounce from $575.25 late on Monday. ??“ AFP