European shares rise higher
19 Feb 2013
European shares rose higher today, led by food group Danone after it posted forecast-beating sales, even as the broader market sentiment remained cautious with the Italian elections due over the weekend.
The pan-European FTSEurofirst 300 index was up 0.4 per cent to 1,163.46 points, after a three day losing streak while the euro zone's blue-chip Euro STOXX 50 index also rose 0.4 per cent to 2,627.40 points.
French company Danone rose the highest gaining 5.2 per cent after the company beat sales forecasts and announced cost cutting plans, although it said the economic downturn in southern Europe could hurt profits.
The euro zone's sovereign debt crisis has hit southern European countries such as Spain and Italy hardest, leading equity markets to give up some of the gains made in January.
The Euro STOXX 50 index has been in negative territory since the start of 2013, after a 14 per cent rise last year, with some traders expecting European equity markets to lose more ground this month before recovery begins in April.
According to analysts, equity markets had generally had a good start to the year, with valuation continuing to be supportive and many European corporates finding themselves in a strong position financially.
