AFP/London

European equity markets rose yesterday as dealers brushed aside lower-than-expected growth in the US to focus on upbeat jobs data in the world’s biggest economy, dealers said.
London’s benchmark FTSE 100 index ended the day up 0.55% to 6,360.81 points, while Frankfurt’s DAX 30 grew 0.86% to 7,741.7 points — aided also by official data which showed that Germany’s jobless total fell to its lowest level in five months in February.
The Paris CAC 40 won 0.85% to 3,723points and Milan’s FTSE Mib index climbed 0.6% to 15,921 points amid ongoing political deadlock in Italy after inconclusive elections that had sparked a fierce sell-off earlier in the week. Madrid’s Ibex 35 reached 8,154 points yesterday, while Spanish premium risk dropped down to 373 points, five less than the previous day.
In foreign exchange deals, the euro fell to $1.3083 from $1.3136 late in New York on Wednesday. Gold prices declined to $1,588.50 an ounce on the London Bullion Market from $1,604.25 Wednesday.
“Eurozone stock markets enjoyed further gains on Thursday after ECB President Draghi played down the possibility of an early tightening of monetary policy and hopes of a broad coalition government in Italy began to grow,” said analysts at Capital Economics.
European Central Bank chief Mario Draghi on Wednesday sought to soothe concerns over the eurozone outlook. “We are committed to preserving the integrity of our currency, in the interests of all people of the euro area,” Draghi said, reasserting its commitment to buy up bonds of debt-ridden countries.
The comments, which came after US Federal Reserve Chairman Ben Bernanke declared that Fed easing measures would stay in place, came as relief to markets after Italy’s poll deadlock raised fears of a return to Europe’s debt crisis.
US stocks edged higher yesterday, after the Dow soared Wednesday to a five-year high, as the Commerce Department revised the final-quarter growth rate to a positive 0.1% from a contraction of 0.1%. Economists had forecast a revision to 0.5%, however.
“US GDP for the fourth quarter was revised upwards slightly, although by less than expected, but fortunately both jobless claims and the Chicago PMI painted a rosier picture,” said Chris Beauchamp, market analyst at IG trading group.
Separate government data showed new claims for US unemployment benefits fell last week to 344,000, in line with the recent trend after the previous week’s spike higher.
The Dow Jones Industrial Average rose 0.08% to 14,086.47 points in midday trade.
The broad-based S&P 500 gained 0.16% to 1,518.48, while the tech-rich Nasdaq Composite Index rose 0.24% to 3,169.76.
But concerns were mounting yesterday that the “sequester” federal spending cuts expected to come into effect today would cause a spike in layoffs by government contractors and temporary government employees.
Back in Europe, investors pored over a raft of company results in yesterday’s trade.