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Europe stocks hit near 7-month closing high

Published 11/04/2010, 12:41 PM
Updated 11/04/2010, 12:44 PM

PARIS, Nov 4 (Reuters) - European stocks rallied on Thursday and hit levels not seen since April as the Federal Reserve's decision to pump more money into the economy spurred a sharp rise in investors' appetite for risk and weighed on the dollar.

The FTSEurofirst 300 index of top European shares unofficially closed 1.6 percent higher at 1,106.29 points -- marking its biggest one-day rise in more than two months -- while both UK's FTSE 100 index and Germany's DAX index reached two-year highs.

"It's good news to see the Fed taking action, and we have to trust (Fed Chairman Ben) Bernanke to make sure things don't get out of hand," said David Thebault, head of quantitative sales trading, at Global Equities in Paris.

The rally was paced by mining shares climbing along with dollar-denominated commodity prices. Xstrata soared 6.9 percent and BHP Billiton surged 6.4 percent.

Investors' mood was also brightened by strong results from bellwethers Unilever and BNP Paribas, rising 6.6 percent and 3.9 percent respectively. (Reporting by Blaise Robinson)

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