European stock markets ended higher on Monday. In London, the Financial Times-Stock Exchange 100 index rose 10.2 to 5242.4, although the recovery from Thursday's bombing slide seemed to lose some steam.. There was little reaction to inflation reports. Yields on 10-year gilts surged to 4.29% from 4.20% Friday as flight to safety buying evaported.
Among stocks on the move, Vodafone rose on a Spanish newspaper report U.K. company is not interested in Deutsche Telekom's T-Mobile USA wireless unit. Prudential rose on a newspaper report that Citigroup is considering a 1 billion pound bid for Egg Plc, the Internet bank majority owned by Prudential. Asos rose after the company said its annual profit climbed 32%.
In Germany, the DAX Index rose 65.41 to 3-year high of 4663.38 amid reports German car sales improved. The market was also aided by lower oil prices. The euro rose to $1.2073 on technical buying.
SAP rose as as JP Morgan Chase raised a revenue forecast for the software maker and said SAP may lift its estimate for 2005 sales growth. Infineon Technologies rose on higher spot prices for memory chips. Bayer rose after the company and Onyx Pharmaceuticals applied to the FDA for U.S. approval of its Sorafenib drug to treat advanced kidney cancer. Allianz rose after denying reports it planned to shed its Dresdner Bank unit.
In France, the CAC 40 gained 21.25 to 4321.56, even though French industrial output rose by less than expected 0.3% in May. Air France-KLM was higher on an internet report that the company plans to divert 662 million euros from the cabin crew pension surplus and count it as profit over 5 years. France Telecom rose after newspaper Investir added stock to its "favorites" list. Veolia Environnement rose after the company's Onyx unit won a five-year contract to supply waste management for Hong Kong Disneyland Resort and Hotels.
Asian markets rallied, boosted by strong finishes in the U.S. and Europe after the terrorist attacks in London Thursday. Bullish sentiment also stemmed from a drop in benchmark crude oil below $59 in electronic trading, as Hurricane Dennis's bark proved bigger than its bite, alleviating concerns of energy supply disruptions in the Gulf of Mexico.
In Japan, the Nikkei 225 index rose 108.8 points, or 0.94%, to a three-month high of 11,674.79.
In Hong Kong, the Hang Seng index climbed 192.77 points, or 1.38%, to 14,157.24. Upward momentum picked up in the afternoon, driving the market higher into the close. Volume was in line with the recent average.