European stock markets climb as Syria fears recede

AFP/LondonEuropean stock markets rebounded yesterday as fears eased over any imminent Western intervention in Syria and investors switched focus to a possible mega sale in the telecoms sector. With oil prices retreating after recent large gains, share prices of energy majors also cooled. Airlines recovered some ground from losses in recent days when jet fuel costs had surged on prospects that Syria’s escalating conflict could disrupt Middle East energy supplies. London’s benchmark FTSE 100 index ended the day 0.82% higher at 6,483.05 points. Frankfurt’s Dax 30 added 0.45% to 8,194.55 points and the Cac 40 in Paris rose 0.65% to 3,986.35 points. Milan closed up 0.97% and Madrid increased 0.4%. In this mood, eyes turned to the telecom sector where British mobile phone giant Vodafone announced yesterday that it was in talks on a possible sale of its stake in US joint-venture Verizon Wireless in a deal said to be worth more than $100bn. While Vodafone stressed that any deal to sell its 45% stake to US telecommunications group Verizon may well not be concluded, investors dived in to buy the British company’s shares. Vodafone finished 8.2% higher at 204.75 pence in London. The dollar rose to ¥98.45 from ¥97.63 late in New York on Wednesday. The European single currency slipped to $1.3232 from $1.3338 the previous day. Sterling firmed against the euro, with one pound being valued at €1.1711 from €1.16 on Wednesday, as well as against the dollar, strengthening to $1.5594 from $1.5516. On the London Bullion Market, the price of gold slipped to $1,407.75 an ounce from $1,419.50 on Wednesday, when the precious metal had won further support thanks to its status as a safe investment in times of political and economic unrest.In company news, shares in Carrefour rose 5.6% to €24.06 on the Paris stock exchange after the supermarket giant said it swung to a profit in the first half of the year. Shares in Renault climbed 0.36% to €55.24 after the car group announced the departure of its number two, Carlos Tavares.On Wall Street, stocks were higher after data showed the US economy growing much faster than originally estimated in the second-quarter. In midday trading, the Dow Jones Industrial Average added 0.54%, the broad-based S&P 500 slipped 0.67%, while the tech-rich Nasdaq Composite Index rose 1.13%.On the sovereign bonds market, yields were mixed. The rate of return for investors on Britain’s 10-year government bond fell to 2.77% and 10-year US bonds rose to 2.78%. The yield on Germany’s 10-year bonds were flat at 1.87%.