Wall Street rise, results reflect on Euro bourses

LONDON: European stocks closed higher yesterday, with the Paris and Frankfurt markets at fresh five-year highs, carried by positive trading in the US and solid company results, traders said.

In Frankfurt the Dax added 0.49% to 6,361.96, its highest level since March 2001, and in Paris the CAC 40 closed 0.66% higher at 5,437.78 points, its highest level since June 2001.

The London FTSE 100 index closed up 0.3% at 6,244.0 points, while the DJ Euro Stoxx 50 index of top eurozone shares increased 0.68% to 4,072.86 points.

Also in Europe, the Spanish, Belgian and Swiss stock exchanges hit record highs.

Wall Street shares surged, propelling the leading blue chip Dow Jones index to record territory as Americans voted across the country in key congressional elections.

At 1654 GMT, the Dow Jones Industrial Average was up 0.63% at 12,181.27, after striking an intraday record high of 12,191.83 in earlier trading.

The technology-rich Nasdaq composite was up 0.87% at 2,386.55 while the broad-market Standard & Poor??™s 500 index advanced 0.45% to 1,386.00.

In London, Marks & Spencer shot to the top of the FTSE leaders??™ board, surging 6.32% to close at 698 pence after revealing the best first-half result for eight years on the back of a highly successful advertising campaign.

The British clothing-to-food retailer said net profit leapt 32% to ??281.3mn (419.8mn euros, $535.5mn) in the 26 weeks to September 30 this year, compared with the same period the previous year.

In Frankfurt, Postbank shares led the DAX gainers, soaring 4.58% to 61.90 euros after the the banking arm of German postal service Deutsche Post. said third-quarter net profit rose by 17%, ahead of analysts??™ forecasts.

Postbank said it booked bottom-line profit of 147mn euros ($187mn) in the period from July to September, up from 126mn euros a year earlier.

Back in London, Britain??™s third-largest bank Barclays said it would buy German exchange-traded funds provider Indexchange Investment from banking giant HypoVereinsbank (HVB) for 240mn euros.

Barclays shares rose 1.56% to 716.50 pence in London.

Across in Paris, Vivendi shares tumbled 1.43% to 29.60 euros after the French media and telecommunications group revealed that third-quarter sales fell short of market expectations.

European aerospace group EADS, the parent company of aircraft maker Airbus, lost 3.05% to 20.66 euros after US mail group Fedex announced it had cancelled an order for 10 Airbus A380 superjumbos.

Fedex said it had cancelled its order because of delays to deliveries of the A380 and had taken its business to US manufacturer Boeing.

Elsewhere in Europe, the Spanish, Belgian and Swiss stock exchanges hit record highs. In Madrid, the Ibex-35 closed up 0.64% at 14,058.3 points, in Brussels Bel 20 added 0.29% to 4,213.30 points and the Swiss SMI index closed up 0.42% at 8,835.63.

The dollar fell against other major currencies in London amid US congressional elections that could see opposition Democrats gain control of the House of Representatives.

The euro rose to $1.2809 in European trading, from $1.2722 in New York late on Monday. The dollar fell to ??117.42 from ??118.26 late on Monday.

The Democrats were expected to gain substantial ground on the Republicans in the House and perhaps also in the US Senate, a result which was expected to put pressure on the dollar.

The euro was nonetheless hobbled by data showing an unexpected monthly fall in eurozone retail sales in September and an unexpected fall in German industrial output. The pound was being traded at $1.9098 from $1.9007 on Monday. On the London Bullion Market, the price of gold eased to $625.75 per ounce, from $626.10. ??“ AFP