Europe’s bourses started higher on Thursday as Wall Street delivered a strong session overnight thanks to a 7 per cent fall in the price of crude oil and encouraging consumer spending numbers.
The FTSEurofirst 300 rose 0.3 per cent to 1,038.39 with Frankfurt’s Xetra Dax up 0.4 per cent to 4,204.39 and the Paris CAC-40 adding 0.3 per cent to 3,809.73. The FTSE 100 in London rose 0.2 per cent to 4,744.6.
Wall Street rallied sharply on Wednesday after data showed a higher-than-expected increase in consumer spending last month and increased manufacturing activity, which boosted hopes for a December rally.
By the close, the Dow Jones Industrial Average was 1.6 per cent higher at 10,590.22 while the S&P 500 index rose 1.5 per cent to 1,191.37. The Nasdaq Composite added 2 per cent at 2,138.23.
In the UK at 1230 GMT Chancellor Gordon Brown delivers his pre-Budget statement in which he outlines proposals ahead of the Budget proper next year and updates parliament and the country on the state of the economy.
The dollar fell to yet another all-time low against the euro in Asian trade sinking to $1.3381 before recovering fractionally to $1.3377. Versus the pound the dollar slumped to $1.9419 a move of almost ? of a cent during the night.
US crude oil for January delivery was trading around $10 below its October peaks at $45.60 a barrel.
Oil was the only weak sector on the 300, down 1 per cent, with off 1.5 per cent to 523.5p and Spain’s also down 1.5 per cent at €30.26 as the top ten losers includes eight oil stocks. /www.news.ft.com/