Strong European Rally

Elena
03 Apr, 2006
Frankfurt

European stocks started the second quarter sharply higher, reflecting broad rally in the Asian-Pacific region and some merger-and-acquisition activity. The German DAX 30 hit a five-year high, rising 0.6% to 6,004, outpacing London FTSE 100, rising 0.6% to 6,002. The French CAC 40 also advanced 0.6%.

[R] 8:15 AM European stocks rallied at mid-day.[/R]
European markets made a strong performance at the start of the second quarter, following a broad rally in the Asian-Pacific region. Merger-and-acquisition activity also provided support. The German DAX 30 reached a five-year high of 0.6% on news that Alcatel agreed to acquire Lucent Technologies for $14.45 billion in stock, a deal which will place the French mobile phone maker among the world’s two leading makers of communications equipment. The French CAC 40 advanced 0.6% and London FTSE 100 also gained 0.6%.


[R]7:45AM Asian markets finished higher, led by Japan and Hong Kong.[/R]
Asian-Pacific benchmarks sharply advanced Monday to reach multi-year highs. The Nikkei led gainers, reaching its highest level in six years of 1.6% to 17,333.31. The index rallied on business sentiment survey which showed broad economic recovery and strong buying interest in technology, banking and insurance stocks. Among the electronics makers, Toshiba rose 3.8% and Sony climbed 1.5%, while banking stocks Mitsubishi Financial Group gained 2.2% and Mizuho Financial Group rose 2.2%. Hong Kong’s Hang Seng hit a five-year high of 1.6% at 16063.75, lifted by 3.2% gain in China Mobile stock and improved demand for property blue-chip stocks, such as Hang Lung, up 5.1%. China Shanghai Composite also surged 1.6% and Taiwan Weighted index rose 0.7% on semiconductor and steel shares.