European stock markets closed higher Friday, extending gains on the back of better-than-expected US economic data and relief that the Greek debt crisis seems to be under control.
Dealers said early trade was tentative as investors consolidated the strong advance made as the Greek parliament approved a make-or-break austerity package to win fresh debt funding from the EU and IMF on Wednesday and Thursday.
They said early trade Friday was tentative, however, after subdued manufacturing data in Britain, China and the eurozone but it then picked up after US figures surprised on the upside, sending Wall Street sharply higher.
In London, the benchmark FTSE 100 index of top shares closed up 0.74 per cent at 5,989.76 points. In Frankfurt, the DAX rose 0.59 per cent 7,419.44 points and in Paris the CAC 40 added 0.63 per cent to 4,007.35 points.
Other European markets posted similar gains.
Growth in private sector manufacturing across the eurozone hit a one-and-a-half-year low in June, hit by the impact of budget cuts and weaker exports, according to data from London-based research group Markit.
That, combined with weak numbers for Britain and China, reinforced the view that the global economy is slipping as the United States struggles to keep activity going in the face of a moribund housing market.
'It is notable that the further slowdown in UK manufacturing activity in June was replicated across Europe and also in several other countries,' an economist said.
Source : New Age
