European stock markets closed firmer yesterday on strong US growth figures after a testing week dominated by Middle East unrest, Portugal’s debt crisis and Japanese efforts to recover from its devastating earthquake. Dealers said sentiment overall appears to have steadied following heavy losses on concerns that Middle East unrest and the earthquake in Japan could derail the global economic recovery. Despite a continued flow of bad news on both fronts, coupled with fresh fears that Portugal might need a debt bailout after its government was voted out mid-week, the stock markets held up relatively well. Dealers said figures showing the US economy grew 3.1% in fourth quarter 2010, up from the previous estimate of 2.8%, provided some reassurance for investors keeping a wary watch on the unprecedented developments. In London, the FTSE 100 index of leading shares up 0.34% to 5,900.76 points. In Paris, the CAC 40 added 0.09% to 3,972.38 points while in Frankfurt the Dax gained 0.18% to 6,946.36 points. “Friday marked yet another day of gains for European equities with traders continuing to buy into stocks which they feel are good value,” said Joshua Raymond, an analyst at London trading group City Index. The main talking point in London was British energy giant BP after its historic tie-up with Russian group Rosneft for Arctic exploration was ruled illegal given its previous commitments to its TNK-BP joint venture in Russia. “The ruling is a bit of a setback for the oil giant which is looking to maximise operations and restore its core brand value after the Gulf of Mexico oil leak last year,” Raymond said. BP closed down 0.29% on the day. Analysts said the most likely outcome would be a snap election at the end of May or early June, leaving a long time for the markets to fret over the results and what would happen next. Elsewhere in Europe, markets were mostly firmer too, chalking up modest gains. In New York, stocks were higher in early trade, supported by the revised fourth quarter growth figures and solid corporate results. The blue-chip Dow Jones Industrial Average was up 0.5% at around 1710 GMT, with the tech-heavy Nasdaq Composite adding 0.7%. Better-than-expected results “are helping the markets extend the week’s gains despite continued euro-area debt concerns, Middle East tensions and the nuclear crisis in Japan”, analysts at brokerage Charles Schwab noted.The European single currency meanwhile steadied against the dollar yesterday as traders awaited the outcome of a two-day eurozone crisis summit in Brussels, amid stubborn fears over debt-laden Portugal. In London trading yesterday, the euro changed hands at $1.4166 against $1.4168 in New York late Thursday, at ¥115.21 (114.76), £0.8793 (0.8789) and 1.2944 Swiss francs (1.2868). The dollar stood at ¥81.32 (80.99) and 0.9136 Swiss francs (0.9082). The pound was at $1.6109 (1.6117). On the London Bullion Market, the price of gold rose to $1,434.18 an ounce from $1,447 late Thursday, when it had struck a record peak of $1,447.82