On Friday European stocks rose, extending the Stoxx Europe 600 Index’s third straight week of gains, as Thursday’s aftershock in Japan caused limited damage. Asian shares and U.S. index futures increased.
BHP Billiton Ltd. and Rio Tinto Group led European basic- resource producers higher as metal prices advanced on the London Metal Exchange. Raiffeisen Bank International AG (RBI) climbed 1.5 percent after raising its dividend more than fivefold. TNT NV (TNT) tumbled 6.8 percent as the Dutch mail carrier that’s planning to spin off its express division said the unit’s profit fell.
European stocks rose in early trade, resuming a brisk three-week rally after the European Central Bank’s decision to raise interest rates helped fuel optimism over the health of the euro zone economy.
Investors were also relieved a strong aftershock which struck Japan’s earthquake-ravaged northeast late on Thursday had not done major damage. News of the earthquake had sparked profit taking in late trading in Europe on Thursday.
The FTSEurofirst 300 index of top European shares was up 0.5 percent at 1,149.98 points.
As expected, the European Central Bank raised interest rates for the first time since the 2008 financial crisis on Thursday, and market expectations of more hikes this year sent the euro to a 15-month high against the dollar, boosting foreign investors’ appetite for the region’s stocks as they seek exposure to the rallying currency.
Portuguese stocks extended their relief rally while euro zone finance ministers were set to discuss the country’s bailout plea during the day, including how much it needs and what reforms it could do in return.
Asian stocks advanced, driving the regional benchmark index to its highest level since last month’s earthquake, on speculation damage was limited from Thursday’s aftershock in Japan and that engineering companies may benefit from efforts to rebuild the country.
This article was compiled by Valletta Fund Management Limited, a member of the BOV Group. Valletta Fund Management,
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