9 February 2007 - 13:16
  • News ID: 98330

European share prices rose in early trade on Friday on the back of a string of corporate news and higher oil prices, while investors eyed the Group of Seven finance ministers meeting in Germany.

A 2.2-percent rise in DaimlerChrysler (DCXGn.DE) shares pushed up the DJ Stoxx European auto sector index after Citigroup upgraded the shares to a "buy" from a "hold."

 

The pan-European FTSEurofirst index (^FTEU3 - news) of 300 leading shares rose 0.5 percent to 1,542.74 points by 0853 GMT.

 

London"s FTSE 100 (^FTSE - news) gained 0.7 percent and the French CAC 40 (^FCHI - news) and Germany"s DAX (^GDAXI - news) rose 0.6 percent.

 

"In the short term we think that stock markets will continue to rise. But we are more skeptical in the mid term," Thomas Gruener, analyst at Landesbank Berlin said.

 

Oil prices gained 0.3 percent to $59.88 a barrel, after rising above $60 a barrel earlier for the first time in a month. BP (BP.L) and Total (TOTF.PA) shares were up 1 percent.

 

Gold rose temporarily above $660 an ounce, but struggled to hold the gains as dealers turned their attention to a Group of Seven finance ministers" meeting starting later in the day in Essen, Germany. Copper recovered from lows on Thursday.

 

Mining stocks such as BHP Billiton (BLT.L), Anglo American (AAL.L) and Xstrata (XTA.L) rose more than 1 percent.

 

Among major movers, Alcatel-Lucent (ALU.PA) rose 2.6 percent after the French-American telecoms equipment provider said it was stepping up job cuts and reported a fourth quarter loss.

 

PIN/REUTERS

News ID 98330

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