22/03/2011
European stocks rise on Libya, Japan
European stocks rose on Monday, supported by UN-backed military action in Libya, easing nuclear fears in Japan and merger and acquisition activity in the telecoms sector.
London's benchmark FTSE 100 index leapt by 1.19 per cent to 5,786.09 points.
In Paris, the CAC 40 climbed an impressive 2.47 per cent to end at 3,904.45 while in Frankfurt the DAX added 2.28 per cent at 6,816.12 points.
Deutsche Telekom was one of the big gainers, up 11.26 per cent on the day after investors gave the thumbs up to ATT's purchase of the German telecom giant's T-Mobile USA Monday, sending shares in both firms soaring.
The deal would enable ATT to leapfrog Verizon as the biggest US cellphone provider, giving it 34 million more subscribers. After the deal two out of five US mobile customers would be under its roof.
'The start of military activities by the international coalition and some progress with the Japan nuclear crisis has all helped to buoy markets this morning,' said trader Ben Critchley at trading group IG Index.
French, American and British forces have launched the biggest intervention in the Arab world since the 2003 US-led invasion of Iraq, firing more than 120 Tomahawk Cruise missiles and conducting bombing raids on key Libyan targets.
An airstrike against an administrative building in a compound including Muammar Gaddafi residence in Tripoli destroyed the Libyan leader's 'command and control capability,' a coalition official told AFP.
Also spurring trade was the US Treasury's decision to begin selling off $US142 billion worth of mortgage-backed securities - seen as a signal that markets were getting stronger.
However, at the same time, the strikes on crude-rich Libya sent world oil prices spiking by more over a dollar, jangling investor sentiment.
At 1700 GMT Brent North Sea crude for May was changing hands at $US115.16, down from its intraday high but up $US1.23 from Friday's close.
Asian shares also rose Monday, on hopes that crews would avert a meltdown at a Japanese nuclear plant, but dealers were still cautious while air strikes in Libya hurt sentiment and hiked oil.
With Tokyo's stock exchanges closed for a public holiday, the region extended Friday's gains that came after a week of volatility in which billions of dollars were wiped out following the quake-tsunami terror and atomic crisis.
Hong Kong ended up 1.73 per cent, Sydney closed up 0.35 per cent and Seoul advanced 1.13 per cent.
Elsewhere in Europe too the movement was uniformly upwards.
Madrid was up 2.38 per cent while Brussels put on 2.35 per cent and the Swiss bourse gained 2.06 per cent.
