LONDON (AFP) –
Europe's leading stock markets rallied on Wednesday as investors eyed a global economic recovery following the release of some positive earnings and economic data, analysts said.
Approaching midday in London, the FTSE 100 index of leading shares was up 1.64 percent to 4,307.30 points.
Frankfurt's DAX 30 climbed 1.99 percent to 4,876.69 points and the Paris CAC 40 jumped 2.1 percent to 3,147.39 points.
The DJ Euro Stoxx 50 index of leading eurozone shares surged by 2.07 percent to 2,419.79 points.
On the foreign exchange market, the European single currency advanced to 1.4065 dollars.
"Stock markets across Europe rose for the third day in a row on Wednesday after better then expected Intel results after the bell last night," said City Index market analyst Nick Serff.
The FTSE was additionally helped by some positive unemployment data.
"Although the unemployment number hit its highest rate since January 1997, the number of people claiming jobless benefit rose by less then expected. This helped the FTSE trade above 4,300 (points) for the first time in weeks," added Serff.
The number of people claiming unemployment benefits in Britain rose in June at the slowest pace for 13 months, official data showed on Wednesday.
The unemployment rate however jumped to 7.6 percent, the highest level since January 1997, emphasising the depths of Britain's worst recession in decades.
US stocks struggled higher Tuesday as a stronger-than-expected profit report from financial giant Goldman Sachs helped investors look past lacklustre economic data.
On Tuesday, Goldman Sachs posted a net profit of 3.44 billion dollars in the second quarter, topping market expectations and easing fears about a collapsing financial system.
"Investors will be making the most of this post-Goldman optimism," said IG Index market strategist Anthony Grech.
Chipmakers meanwhile got a boost after US semiconductor maker Intel posted better-than-expected second quarter results and offered a bright outlook.
Japanese stocks ended narrowly mixed Wednesday as investors reacted coolly to the gains on Wall Street, dealers said.
Leading the way in London on Wednesday were miners and banks. Anglo-Swiss miner Xstrata soared 5.27 percent to 646.7 pence and Barclays banking group gained 3.18 percent to 309.55 pence.
"Commodity producers are leading the charge higher, as analysts are forecasting increased demand from China," added Grech.
