Wednesday November 4, 12:01 PM
European stocks recover
LONDON (AFP) - Europe's main stock markets rebounded on Wednesday after sharp falls a day earlier as investors assessed earnings news and record gold prices and awaited a US interest rate decision.
In late morning European trade, London's FTSE 100 index of top shares rose 0.78 percent to 5,076.65 points, Frankfurt's DAX 30 (Xetra: news) climbed 1.42 percent to 5,429.31 points and the Paris CAC 40 won 1.56 percent to 3,640.13 points nearing the half-way mark.
The DJ Euro Stoxx 50 index of top eurozone shares advanced 1.36 percent to 2,749.15 points.
European equities had fallen sharply Tuesday, with Frankfurt losing almost two percent on renewed doubts about the strength of the global recovery.
The FTSE had meanwhile dived under the psychological 5,000 barrier for the first time since October 5.
Some of the losses were offset late Tuesday after the US Commerce Department reported a better-than-expected gain in US industrial orders.
Wall Street stocks closed mixed overnight amid worries about the prospects of recovery from recession.
Tokyo's benchmark Nikkei (news) -225 index closed up 0.42 percent on Wednesday, mirroring gains on other Asian markets.
In Europe on Wednesday investors digested a batch of earnings news as the Federal Reserve was expected to hold its key rates at near-zero to help the US economy recover from recession when it concludes a two-day meeting.
"A solid trading session across Asian equities and a recovery for Wall Street after a shaky start yesterday has helped boost sentiment," said IG Index chief market strategist David Jones.
"This combination has helped take the FTSE off one-month lows."
In London, the share price of food-to-clothing retailer Marks and Spencer (LSE: MKS.L - news) jumped 5.87 percent to 361 pence after the group's underling profits beat market expectations, traders said.
In Paris, Societe Generale (GLE.NX - news) rallied 4.70 percent to 45.70 euros as the French bank said net profits more than doubled in the third quarter.
The mining and auto sectors were also in focus as gold prices soared to record highs above 1,093 dollars an ounce and after General Motors (NYSE: GM - news) pulled out of the sale of its European car division, provoking anger in Germany.
German Economy Minister Rainer Bruederle said that GM's decision suddenly to abandon the deal with Canadian group Magna was "totally unacceptable." The British government said however that it would work with the US auto giant to secure the future of British factories.
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