European bourses enjoy buoyant sentiment

Shadowing gains for bond markets, European bourses took a half-point rise in interest rates by the European Central Bank in their stride.

The FTSE Eurobloc 100 index rose 0.9 per cent to 1,138.87 and the broader FTSE Eurotop 300 index added almost 1 per cent at 1,362.28.

Healthcare was the lead sector, rising 3.2 per cent following the latest US mega-merger.

Frankfurt rose for the fourth day running, adding 74.75 at 5,635.62 on the Xetra DAX index.

Linde pushed higher, adding €2.10 at €51.50 on news of a heavy subscription for the non-rights tranche of the engineering group's share issue and helped by Wednesday's upgrade at Merrill Lynch.

Chemicals were supported by industry consolidation talk following the fusion of Warner-Lambert and American Home Products into the latest US healthcare and drugs giant.

BASF gained €1.17 at €42.70 and Bayer 87 cents at €39.27. Degussa Huels put on 58 cents at €36.80.

Dresdner Bank was the main feature of the financial sectors, up 57 cents to €49.37 after its planned restructuring earned positive comment from Goldman Sachs.

Paris extended gains won over the past few sessions despite the rise in euro-zone interest rates, but the CAC-40 was capped by its proximity to the key 5,000 level.

Nevertheless, at 4,943.74, a rise of 25.90, it was the fifth consecutive record close.

Equant led the gainers, advancing €6.20 to €89.70 for a rise of 7.4 per cent following a strong overnight performance by Nasdaq.

Amsterdam continued to push higher, adding 5.59 at 584.76 on the AEX index, in spite of heavy reverses at Royal Dutch, the market heavyweight.

Royal Dutch fell foul of analysts. After two solid quarters, the latest three months to September came in at the bottom end of the estimates' range and the shares fell €1.69 to €56.