Europe: Shares rise but still face weekly loss

[LONDON] European shares rose on Friday although they still faced running up a loss for the week following blows dealt to the market by an emissions test debacle at Volkswagen and new signs of a slowdown in China.

The pan-European FTSEurofirst 300 index, which had fallen 2.1 per cent on Thursday, climbed back up 2.2 per cent in early trading, while the euro zone's blue-chip Euro STOXX 50 index also advanced 2 per cent.

Nevertheless, the FTSEurofirst was still down 2.3 per cent from the end of last week.

Volkswagen rose 3.6 per cent as traders said signs that the company would name Matthias Mueller, the head of its Porsche sports car brand, as its chief executive showed VW's determination to tackle its emissions data problems.

Rival carmaker BMW also rose 4.5 per cent after German car magazine Auto Bild clarified an earlier report to say it had no evidence of data manipulation at BMW.

France's benchmark CAC equity index also gained 1.8 per cent after data showed that a French consumer confidence index at its highest level since October 2007.

REUTERS