European stocks heading higher into next week

European stock markets were ending the week on a high Friday, with Frankfurt's blue-chip DAX index rising above the psychological 7,000 points-level, on stimulus hopes and positive US data.

The DAX gained 0.21 percent to 7,011.3 points in morning deals after already breaking briefly through the key level on Thursday for the first time since early April.

Elsewhere Friday, London's FTSE 100 index was up 0.22 percent at 5,847,50 points and in Paris the CAC 40 won 0.24 percent to 3,488.98. Madrid rallied 1.98 percent and Milan grew 1.62 percent.

"Markets continue to drift higher on expectations of the prospect of additional central bank easing, with trading volumes remaining well below seasonal averages," said Michael Hewson, senior analyst at trading group CMC Markets.

"The absence of any good news has failed to dampen expectations; if anything it has reinforced the expectation that the authorities will take the necessary action to mitigate any problems in the coming weeks."

In foreign exchange deals, the euro increased to $1.2374 from $1.2355 late on Thursday in New York.

Spirits were lifted by comments Thursday from German Chancellor Angela Merkel reasserting her desire to save the eurozone.

Merkel, who as head of Europe's biggest economy is key to the success of any plan to save the euro, backed European Central Bank (ECB) chief Mario Draghi's commitment to do whatever was needed to support the currency.

Traders also welcomed US data on new jobless claims and housing construction, which provided more evidence that the world's biggest economy was growing steadily, albeit slowly.

"European equity markets are trading moderately higher... managing to build on yesterday's late afternoon rally on the back of much better than expected US housing permits," said trader Markus Huber at ETX Capital.

On the downside, shares in Lonmin, the world's third-largest platinum producer, slid in London as violence at a Lonmin mine in South Africa resulted in the killing of up to 36 people.

Lonmin shares were down 3.55 percent at 625 pence in late morning deals on London's second tier FTSE 250 index. The stock has slumped 37 percent since the start of the year.

Dozens of people have died in clashes between police and workers over a wildcat strike at the platinum mine. The illegal walk-out began a week ago and quickly descended into deadly clashes, first between rival unions and then between workers and police.

Lonmin has insisted that police and not the company are responsible for the mine's security, while South African President Jacob Zuma was cutting short his visit to Mozambique for a regional summit to visit the scene of the violence.

"Zuma is to cut short his attendance of the... summit in Maputo, Mozambique in order to visit Rustenburg this afternoon," his spokesman Mac Maharaj said in a statement.

Source: http://news.yahoo.com/european-stocks-heading-higher-next-week-103329193.html

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