European shares rose today, hitting a five-month high and surging past a technical resistance level, led by carmakers and miners after higher-than-expected Chinese GDP data showed demand prospects were improving for companies in these sectors.
The pan-European FTSEurofirst 300 index of top shares was up 0.8 per cent at 1,033.97 points at lunchtime, its highest level since August 2011, pushing through a resistance level at 1,028 - its October 2011 high from the rally which started in September 2011.
The index was also above its 200-moving average - a momentum indicator which defines possible support and resistance areas - a bullish sign for equities.
Acquisition news helped Royal Bank of Scotland top the FTSE 100 index, up 4.6 per cent, after it said it would sell its aircraft-leasing business to Sumitomo Mitsui Financial Group (SMFG) and Sumitomo.
China's fourth-quarter year-on-year growth of 8.9 per cent was slightly stronger than the 8.7 per cent that economists polled by Reuters had predicted, though it was the weakest growth rate in 2.5 years.
Major European bourses were all in positive territory this morning with the FTSE 100 up 0.75 per cent, the German Dax gaining 1.66 per cent and the FRench CAC 40 up 1.48 per cent.
In Dublin, the Iseq index of leading shares was up 10.32 points at 29546.28 at 1.15pm.
European shares well bolstered by comments from the head of the EU's bailout fund, the European Financial Stablity Facility (EFSF). Klaus Regling downplayed the importance of Standard & Poor's downgrade of its credit rating to AA+ yesterday.
Shares were also supported by a successful auction of six-month bonds today.
Asian stocks closed higher earlier today with the regional benchmark index reaching its highest close in almost six weeks.
Agencies
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