(MENAFN- The Peninsula) News of rebounding German investor sentiment sent European stock markets and the euro racing higher yesterday, dealers said.
London's benchmark FTSE 100 index of leading shares rose 0.49 percent to 6,704.14 points in midday deals compared with Monday's close.
Frankfurt's DAX 30 motored 1.13 percent higher to 9,410.95 points and the CAC 40 in Paris won 0.70 percent to 4,255.82.
The European single currency increased to $1.2520 from $1.2448 late in New York on Monday.
Investment sentiment in Germany rebounded in November, a survey showed yesterday, adding to signs that Europe's biggest economy is stabilising in another piece of positive news for the eurozone.
After hitting a 22-month low in October, the widely watched investor confidence index calculated by the ZEW economic institute was back in positive territory in November, jumping to 11.5 points from minus 3.6 points the previous month, ZEW said in a statement.
"The latest ZEW economic surveys showed analysts and institutional investors are more optimistic about conditions in the eurozone's largest economy than they've been since July - and far more so than the markets had expected," said Alpari analyst Craig Erlam.
The ZEW barometer increased for the first time so far this year, soothing investor concerns over the German economy, which narrowly avoided a recession in the third quarter.
Europe's equity markets had bounced into modest gains on Monday after European Central Bank chief Mario Draghi hinted at more steps to tackle the threat of deflation.
"Stocks remain underpinned by comments from Draghi ... that an expanded asset purchase programme could include government bonds," added Atif Latif, head of trading at Guardian Stockbrokers.
In Frankfurt, German pharmaceuticals maker Merck KGaA saw its share price gain 1.80 percent to 78.05 euros.
The stock had jumped almost 4.0 percent on Monday after Merck bought US speciality chemicals firm Sigma-Aldrich for ¤13.1bn ($17bn).
In London, energy explorer Tullow Oil was the biggest gainer following positive broker comment. Tullow shares jumped 3.38 percent to 474.2 pence.
Back in the foreign exchange market, the British pound hit a one-month euro low on news that 12-month inflation rose to 1.3 percent in October from 1.2 percent in September. Expectations had been for no change.
The euro rose to 80.10 British pence from 79.61 late on Monday. The pound meanwhile firmed to $1.5640, up from $1.5637 on Monday.
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