EUROPE: Shares advance
LONDON: European stocks hit five-year highs yesterday in a broad-based rally after news that Lawrence Summers has pulled out of the race to lead the United States Federal Reserve.
London's benchmark FTSE 100 index rose 0.81 per cent to stand at 6,636.80 points in midday deals. Frankfurt's DAX 30 advanced 1.20 per cent to 8,611.52 points and the Paris' CAC 40 won 0.82 per cent to 4,148.05 points.
"News that Larry Summers has ruled himself out of the race to succeed Ben Bernanke as chairman of the Fed has been interpreted as a positive, with the market seemingly showing a preference for the continuity offered by current vice chair Janet Yellen," said Matt Basi, head of UK sales trading at CMC Markets.
In the meantime, the FTSEurofirst 300 was up 0.8 per cent at 1,259.70 by 1054GMT, its highest level since mid-2008. Agencies